Macquarie ‘Half-Truth’ Claims OK’d After Supreme Court Ruling

A suit by Macquarie Infrastructure Holdings LLP investors has mostly survived a recent US Supreme Court decision in their case holding that a “pure omission” can’t support a securities fraud claim, the Second Circuit ruled Monday.

Allegations that the conglomerate omitted information about a regulatory trend and its effect on Macquarie’s fuel oil storage business must be excised from the proposed class action under the high court’s ruling, the appeals panel said. But securities fraud claims under Section 10(b)(5) of the Securities Exchange Act that are based on alleged “half-truths” can still proceed, the panel said in an unsigned, unpublished ...