Rule 10b-5, reliance, causation, transactions


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.



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