Oral Argument: NVIDIA Corp. v. E. Ohman J:or Fonder AB | Case No. 23-970 | Date Argued: 11/13/24
The High Court Report · SCOTUS Oral Arguments
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Show Notes
Case Info: NVIDIA Corp. v. E. Ohman J:or Fonder AB | Case No. 23-970 | Date Argued: 11/13/24 | Date Decided: 12/11/24
Link to Docket: Here.
Background:
The Private Securities Litigation Reform Act (PSLRA) imposes "[e]xacting pleading requirements" on plaintiffs who file securities fraud class actions. Tellabs, Inc. v. Makor Issues & Rights, Ltd., 551 U.S. 311, 313 (2007). To state a claim, plaintiffs must "state with particularity all facts" supporting their allegations of falsity and must also allege "facts giving rise to a strong inference" of the required mental state. 15 U.S.C § 78u-4(b)(1), (2)(A); see also Fed. R. Civ. P. 9(b). Plaintiffs frequently try to meet these requirements by claiming that internal company documents contradicted the company's public statements.
Questions Presented:
- Whether plaintiffs seeking to allege scienter under the PSLRA based on allegations about internal company documents must plead with particularity the contents of those documents.
- Whether plaintiffs can satisfy the PSLRA's falsity requirement by relying on an expert opinion to substitute for particularized allegations of fact.
Result: Writ of certiorari DISMISSED as improvidently granted by per curiam Opinion.
Link to Opinion: Here.
Oral Advocates:
- For petitioners: Neal K. Katyal, Washington, D. C.
- For respondents: Deepak Gupta, Washington, D. C.; and Colleen R. Sinzdak, Assistant to the Solicitor General, Department of Justice, Washington, D. C. (for United States, as amicus curiae.)