Macquarie Urges Supreme Court to Disallow ‘Pure Omission’ Claims

Failing to disclose a “known trend” in SEC filings can’t be the basis for a securities fraud claim, Macquarie Infrastructure Corp. said in an opening brief to the US Supreme Court.

The US Court of Appeals for the Second Circuit erred in reviving an investor’s claim that Macquarie violated the Securities Exchange Act when it failed to disclose its assessment of the impact of a new oil regulation, the company said in pursuing the reversal of that ruling.

The act’s Section 10(b) securities fraud prohibitions, as detailed in the related Rule 10b-5, target misrepresentations and half-truths rather than “pure omissions,” ...