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BofI Wants New Look at Investors’ FOIA Corrective Disclosure Win

Nov. 18, 2020, 7:54 PM

BofI Holding Inc. asked the Ninth Circuit to rehear a decision reviving a would-be class suit where investors alleged a news article based on information obtained through a request to the government functioned as a corrective disclosure.

The panel decision—which allows investors to rely on corrective disclosures derived from Freedom of Information Act responses so long as they plausibly allege the details hadn’t been previously disclosed—creates a three-way circuit split, the internet bank holding company told the U.S. Court of Appeals for the Ninth Circuit.

The same court in October held that when an investor “alleges an article’s report or ...