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High Court Fight Could Disrupt Private Tender Offer Suits

April 12, 2019, 8:55 AM

Two computer hardware firms who accidentally left a chart out of their tender offer will try to convince the U.S. Supreme Court not to hold them responsible April 15.

The companies will argue that negligently omitting material information from a tender offer isn’t enough to make them liable to investors—if investors even have the right to sue over the alleged omissions at all.

No matter what the justices ultimately decide, the case has “very practical impacts,” Nick Morgan, a partner in Paul Hastings LLP’s Los Angeles and Palo Alto offices, told Bloomberg Law. Eliminating investors’ private right of action ...