This Note addresses a key element of Rule 10b-5 of the Securities and Exchange Act of 1934: causation. Though typically shown through reliance, some courts have allowed a proof of materiality to substitute. This Note addresses the circuit split and looks to articulating a difference between omission and nondisclosure in determining whether the court should rely on reliance or materiality.
George O. Richardson, III,
Omission and Nondisclosure Under SED Rule 10b-5: A Distinction in Search of a Difference,
7 Fordham Urb. L.J. 423
Available at: http://ir.lawnet.fordham.edu/ulj/vol7/iss2/8