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U.S. Supreme Court Sets High Bar for Section 11 Securities Claims Based on Statements of Belief or Opinion

Continuing its trend of issuing important decisions that define the scope of private actions under the securities laws, the U.S. Supreme Court recently issued its decision in Omnicare, Inc. v. Laborers District Council Construction Industry Pension Fund, which addressed how statements of opinion and belief are treated for purposes of securities claims under Section 11 of the Securities Act of 1933. (Section 11 covers misstatements made in SEC registration statements in connection with the public offering of stock.)