[JURIST] The US Supreme Court [official website] granted certiorari [order list, PDF] in two cases on Monday. In US Bank National Association v. Village at Lakeridge [docket], a bankruptcy case from the US Court of Appeals for the Ninth Circuit [opinion, PDF], the court will determine [SCOTUSblog materials] whether the appropriate standard of review for determining non-statutory insider status in a bankruptcy case is the de novo standard, as applied by the Third, Seventh and Tenth Circuits, or the "clearly erroneous" standard adopted by the Ninth Circuit. On review, the appeals court held that the Bankruptcy Appellate Panel [official website] properly reversed a lower court's ruling that a party who had a "close business and personal relationship" with the debtor in the case qualified as a statutory or non-statutory insider.
The court also granted the petition for a writ of certiorari in Leidos, Inc. v. Indiana Public Retirement System [docket]. The class action securities fraud case comes from the US Court of Appeals for the Second Circuit [opinion, PDF]. The court will determine whether the appellate court erred in holding that Item 303 of Securities and Exchange Commission Regulation S-K [text, PDF] creates a duty to disclose that is actionable under Section 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5. The Second Circuit's ruling is in conflict with decisions made by the Courts of Appeals for the Third and Ninth Circuits. The lawsuit arose from "a series of alleged material misstatements and omissions in [defendent]'s public filings regarding its exposure to liability for employee fraud in connection with [its] contract work for New York City's CityTime project [NYT report]."