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High Court Will Take Negligent Omission Fraud Case

Jan. 4, 2019, 8:03 PM

The U.S. Supreme Court will take a look at a case over whether there’s a private right of action for tender offer misstatements or omissions made negligently but not knowingly or recklessly, it said Jan. 4.

Two computer hardware firms asked that a securities fraud case against them be thrown out because the alleged omissions the suit is based on were merely negligent.

Emulex Corp. investors sued it and Broadcom Inc. subsidiary Avago Technologies Wireless (USA) Manufacturing LLC over their 2015 merger. Emulex left out a chart of semiconductor transactions that it should have included in its recommendation to shareholders ...

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