The Supreme Court on Friday said it will hear arguments Nov. 6 in a case challenging whether an issuer's duty to disclose certain information allows for class-action lawsuits.
Leidos Inc. is challenging a decision in favor of the $31 billion Indiana Public Retirement System, Indianapolis, for losses tied to allegedly misleading initial public offering documents. At issue is the Securities and Exchange Commission's regulation S-K, which requires companies to disclose "any known trends or any known demands, commitments, events or uncertainties that will result in or that are reasonably likely to result in the registrant's liquidity increasing or decreasing in any material way."
The pension fund filed suit over Leido’s failure to disclose in its IPO filings liability connected with a kickback scam when the company was called Science Applications International Corp., and building a computerized payroll system for New York City. Two SAIC employees were charged and SAIC paid more than $500 million in fines to settle related charges.