The Circuits Are Split in How They Apply the Safe Harbor in Securities Law

In recent years, some courts have called into question whether the safe harbor for forward-looking statements codified in the PSLRA applies when the cautionary statements themselves omit information about risks that have materialized or are presently materializing when the cautionary statements are made. Skadden attorneys Virginia Milstead, Mark Foster and Samuel Clark-Clough discuss the Ninth Circuit's recent decision in Funko, which deviates from the approach of other circuit courts and exacerbates a circuit split on a recurring matter.