Supreme Court hears arguments on disclosure of adverse drug reactions, water rights

 The Jurist

The US Supreme Court heard oral arguments Monday in Matrixx v. Siracusano on a pharmaceutical company’s obligation under §10(b) of the Securities Exchange Act and SEC Rule 10b-5 to disclose reports of the Securities Exchange Act and SEC Rule 10b-5 to disclose reports of patients’ adverse reactions when the number of incidents is statistically insignificant.

TheUS Court of Appeals for the Ninth Circuit held that the inference that Matrixx withheld reports of patients’ adverse reactions intentionally or with deliberate recklessness was as compelling as if they withheld the information innocently, and therefore the plaintiff had met the scienter pleading requirement of Rule 10b-5.

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