Two Dismissals Show Supreme Court Hesitance in Securities Cases

The US Supreme Court declined to draw bright-line rules for securities fraud cases, taking the unusual step of dismissing a pair of cases after oral arguments.

In both Facebook v. Amalgamated Bank and Nvidia Corp. v. E. Ohman J:or Fonder AB, the justices initially agreed to resolve what were teed up as circuit splits on how investors could successfully plead securities fraud against corporations. Ultimately, the court determined that it never should’ve taken either case.

“The writ of certiorari is dismissed as improvidently granted,” the justices said Wednesday in their one-sentence ruling dismissing the Nvidia case. The justices issued a ...