Pension-Related Cases Being Heard by the Supreme Court

Pensions & Investments
October 13, 2014

Michael W. Stocker discusses upcoming SCOTUS cases in the new term affecting investors

Regarding the upcoming November 3 arguments in Omnicare Inc. vs. Laborers District Council Construction Industry Pension Fund et al., Labaton Sucharow partner Michael Stocker said, “If the Supreme Court discourages investors from taking registration disclosures at face value, that ruling is expected to shift more due diligence to large investors themselves, regardless of whether they have the staff and budget for it. Such a ruling also could dim investors' appetite for new company offerings, which are having a banner year. Without a track record to go on during initial offerings, a looser standard for statements made in offerings “could well change institutional investors' risk tolerance for IPOs,” he said.

Another case institutional investors should be “tuned in to,” actually won’t be heard by the Supreme Court this term, due to pending status across lower courts. It challenged the time limits for investors to join or opt out of class-action lawsuits, and according to Mike, it “means a potential big problem for investors,”  who “might have to file placeholders” in order to protect their right to sue or join class-action lawsuits.”