Meta Case Leads Justices to Ponder Further Role for SEC on Risks

US Supreme Court justices showed an interest in returning to the SEC the job of refining companies’ risk disclosure requirements during oral argument Nov. 7 in a Meta Platforms Inc. securities fraud case.

The justices repeatedly wondered what kind of guideline they could craft as they confronted a wide range of hypothetical scenarios, including factory fires caused either by wiring problems or by “space junk” falling from the sky.

The high court appeared to be struggling with its options, according to attorneys who listened to the argument. “The court could issue a ruling—with a suggestion to the SEC that ...