Alexander Coley

When is a Belief or Opinion False?: Indiana State District Council v. Omnicare and the Contested § 11 Pleading Standard

This Note analyzes an important question in securities law relating to the pleading standard under § 11 of the Securities Act of 1933. Last year, in Indiana State District Council v. Omnicare, the Sixth Circuit departed from several sister circuits by holding that a securities plaintiff need not allege that a belief or opinion was subjectively false to state a § 11 claim. The circuit split that emerged has attracted significant attention due to its implications for buyers and sellers in the capital markets, ultimately provoking the Supreme Court to grant certiorari to resolve the conflict. In advance of the Supreme Court’s review, the Note argues that both doctrine and policy militate against the Sixth Circuit’s approach.