October Term 2014 · Docket 13-435
Does a belief statement require proof of underlying facts?
Investors sue over false beliefs in a prospectus. The company argues only the belief matters.
Verified source milestones
- — An official oral-argument transcript was verified.
- — An official oral-argument transcript was verified.
The arguments, in order
This case may have been argued more than once. Each entry below uses that session's official transcript. Later arguments do not erase earlier ones.
Argument 1 ·
What happened at the argument
The company's lawyer argued that Section 11 covers only material facts.
The investors' lawyer argued that opinions frequently imply underlying facts.
The Solicitor General argued for a middle ground between the two positions.
Read the official transcript for this argument · Official argument details
Sources used for this argument breakdown
- Official Supreme Court Transcript — file page 10, lines 29-43 — Transcript, file page 10, lines 29-43
- Official Supreme Court Transcript — file page 24, lines 33-1 — Transcript, file page 24, lines 33-1
- Official Supreme Court Transcript — file page 3, lines 21-13 — Transcript, file page 3, lines 21-13
- Official Supreme Court Transcript — file page 3, lines 7-19 — Transcript, file page 3, lines 7-19
- Official Supreme Court Transcript — file page 4, lines 15-25 — Transcript, file page 4, lines 15-25
- Official Supreme Court Transcript — file page 4, lines 35-43 — Transcript, file page 4, lines 35-43
- Official Supreme Court Transcript — file page 43, lines 37-35 — Transcript, file page 43, lines 37-35
- Official Supreme Court Transcript — file page 5, lines 27-49 — Transcript, file page 5, lines 27-49
- Official Supreme Court Transcript — file page 53, lines 19-31 — Transcript, file page 53, lines 19-31
- Official Supreme Court Transcript — file page 53, lines 33-15 — Transcript, file page 53, lines 33-15
- Official Supreme Court Transcript — file page 54, lines 27-37 — Transcript, file page 54, lines 27-37
- Official Supreme Court Transcript — file page 55, lines 39-49 — Transcript, file page 55, lines 39-49
- Official Supreme Court Transcript — file page 56, lines 17-31 — Transcript, file page 56, lines 17-31
- Official Supreme Court Transcript — file page 6, lines 21-35 — Transcript, file page 6, lines 21-35
- Official Supreme Court Transcript — file page 6, lines 39-43 — Transcript, file page 6, lines 39-43
- Official Supreme Court Transcript — file page 6, lines 47-49 — Transcript, file page 6, lines 47-49
- Official Supreme Court Transcript — file page 60, lines 25-31 — Transcript, file page 60, lines 25-31
- Official Supreme Court Transcript — file page 61, lines 10-12 — Transcript, file page 61, lines 10-12
- Official Supreme Court Transcript — file page 7, lines 11-15 — Transcript, file page 7, lines 11-15
- Official Supreme Court Transcript — file page 7, lines 49-7 — Transcript, file page 7, lines 49-7
- Official Supreme Court Transcript — file page 8, lines 11-17 — Transcript, file page 8, lines 11-17
- Official Supreme Court Transcript — file page 8, lines 23-33 — Transcript, file page 8, lines 23-33
- Official Supreme Court Transcript — file page 9, lines 21-31 — Transcript, file page 9, lines 21-31
A citizen's guide to the whole case
What this case is about
The case tests Section 11 of the Securities Act. It asks if opinion statements need factual support.
Official sources for this section
- Official Supreme Court Transcript — file page 24, lines 33-1 — Transcript, file page 24, lines 33-1
- Official Supreme Court Transcript — file page 3, lines 21-13 — Transcript, file page 3, lines 21-13
- Official Supreme Court Transcript — file page 43, lines 37-35 — Transcript, file page 43, lines 37-35
- Official Supreme Court Transcript — file page 53, lines 33-15 — Transcript, file page 53, lines 33-15
- Official Supreme Court Transcript — file page 54, lines 27-37 — Transcript, file page 54, lines 27-37
How the case got here
The Supreme Court heard oral argument in this case on November 3, 2014.
Official sources for this section
- Official Supreme Court Transcript — file page 3, lines 7-19 — Transcript, file page 3, lines 7-19
- Official Supreme Court Transcript — file page 61, lines 10-12 — Transcript, file page 61, lines 10-12
What each side wants
The company wants a ruling that belief statements are not actionable.
The investors want a ruling that belief statements require factual proof.
Official sources for this section
- Official Supreme Court Transcript — file page 24, lines 33-1 — Transcript, file page 24, lines 33-1
- Official Supreme Court Transcript — file page 3, lines 21-13 — Transcript, file page 3, lines 21-13
- Official Supreme Court Transcript — file page 43, lines 37-35 — Transcript, file page 43, lines 37-35
- Official Supreme Court Transcript — file page 53, lines 33-15 — Transcript, file page 53, lines 33-15
- Official Supreme Court Transcript — file page 54, lines 27-37 — Transcript, file page 54, lines 27-37
What each side says
The company argues that only the existence of the belief is a fact.
The investors argue that opinions imply underlying facts that must be true.
Official sources for this section
- Official Supreme Court Transcript — file page 24, lines 33-1 — Transcript, file page 24, lines 33-1
- Official Supreme Court Transcript — file page 3, lines 21-13 — Transcript, file page 3, lines 21-13
- Official Supreme Court Transcript — file page 43, lines 37-35 — Transcript, file page 43, lines 37-35
- Official Supreme Court Transcript — file page 53, lines 33-15 — Transcript, file page 53, lines 33-15
- Official Supreme Court Transcript — file page 54, lines 27-37 — Transcript, file page 54, lines 27-37
What the justices asked
Justice Ginsburg asked if lack of investigation proves a speaker did not believe their statement.
Justice Breyer asked why an issuer's opinion does not imply they investigated the facts.
Official sources for this section
- Official Supreme Court Transcript — file page 10, lines 29-43 — Transcript, file page 10, lines 29-43
- Official Supreme Court Transcript — file page 4, lines 15-25 — Transcript, file page 4, lines 15-25
- Official Supreme Court Transcript — file page 4, lines 35-43 — Transcript, file page 4, lines 35-43
- Official Supreme Court Transcript — file page 5, lines 27-49 — Transcript, file page 5, lines 27-49
- Official Supreme Court Transcript — file page 53, lines 19-31 — Transcript, file page 53, lines 19-31
- Official Supreme Court Transcript — file page 55, lines 39-49 — Transcript, file page 55, lines 39-49
- Official Supreme Court Transcript — file page 56, lines 17-31 — Transcript, file page 56, lines 17-31
- Official Supreme Court Transcript — file page 6, lines 21-35 — Transcript, file page 6, lines 21-35
- Official Supreme Court Transcript — file page 6, lines 39-43 — Transcript, file page 6, lines 39-43
- Official Supreme Court Transcript — file page 6, lines 47-49 — Transcript, file page 6, lines 47-49
- Official Supreme Court Transcript — file page 60, lines 25-31 — Transcript, file page 60, lines 25-31
- Official Supreme Court Transcript — file page 61, lines 10-12 — Transcript, file page 61, lines 10-12
- Official Supreme Court Transcript — file page 7, lines 11-15 — Transcript, file page 7, lines 11-15
- Official Supreme Court Transcript — file page 7, lines 49-7 — Transcript, file page 7, lines 49-7
- Official Supreme Court Transcript — file page 8, lines 11-17 — Transcript, file page 8, lines 11-17
- Official Supreme Court Transcript — file page 8, lines 23-33 — Transcript, file page 8, lines 23-33
- Official Supreme Court Transcript — file page 9, lines 21-31 — Transcript, file page 9, lines 21-31
Why it matters
This case defines the scope of liability for corporate statements. It determines how investors prove fraud in securities offerings.
Official sources for this section
- Official Supreme Court Transcript — file page 24, lines 33-1 — Transcript, file page 24, lines 33-1
- Official Supreme Court Transcript — file page 3, lines 21-13 — Transcript, file page 3, lines 21-13
- Official Supreme Court Transcript — file page 43, lines 37-35 — Transcript, file page 43, lines 37-35
- Official Supreme Court Transcript — file page 53, lines 33-15 — Transcript, file page 53, lines 33-15
- Official Supreme Court Transcript — file page 54, lines 27-37 — Transcript, file page 54, lines 27-37
What happens next
This article currently covers the argument record. Use the official docket link for later case activity.
Official sources for this section
- Official Supreme Court Transcript — file page 10, lines 29-43 — Transcript, file page 10, lines 29-43
- Official Supreme Court Transcript — file page 3, lines 7-19 — Transcript, file page 3, lines 7-19
- Official Supreme Court Transcript — file page 4, lines 15-25 — Transcript, file page 4, lines 15-25
- Official Supreme Court Transcript — file page 4, lines 35-43 — Transcript, file page 4, lines 35-43
- Official Supreme Court Transcript — file page 5, lines 27-49 — Transcript, file page 5, lines 27-49
- Official Supreme Court Transcript — file page 53, lines 19-31 — Transcript, file page 53, lines 19-31
- Official Supreme Court Transcript — file page 55, lines 39-49 — Transcript, file page 55, lines 39-49
- Official Supreme Court Transcript — file page 56, lines 17-31 — Transcript, file page 56, lines 17-31
- Official Supreme Court Transcript — file page 6, lines 21-35 — Transcript, file page 6, lines 21-35
- Official Supreme Court Transcript — file page 6, lines 39-43 — Transcript, file page 6, lines 39-43
- Official Supreme Court Transcript — file page 6, lines 47-49 — Transcript, file page 6, lines 47-49
- Official Supreme Court Transcript — file page 60, lines 25-31 — Transcript, file page 60, lines 25-31
- Official Supreme Court Transcript — file page 61, lines 10-12 — Transcript, file page 61, lines 10-12
- Official Supreme Court Transcript — file page 7, lines 11-15 — Transcript, file page 7, lines 11-15
- Official Supreme Court Transcript — file page 7, lines 49-7 — Transcript, file page 7, lines 49-7
- Official Supreme Court Transcript — file page 8, lines 11-17 — Transcript, file page 8, lines 11-17
- Official Supreme Court Transcript — file page 8, lines 23-33 — Transcript, file page 8, lines 23-33
- Official Supreme Court Transcript — file page 9, lines 21-31 — Transcript, file page 9, lines 21-31
Official Court provenance
Official docket and case history · Official Supreme Court oral-argument detail page
Title and summary sources
- Official Supreme Court Transcript — file page 24, lines 33-1 — Transcript, file page 24, lines 33-1
- Official Supreme Court Transcript — file page 3, lines 21-13 — Transcript, file page 3, lines 21-13
- Official Supreme Court Transcript — file page 43, lines 37-35 — Transcript, file page 43, lines 37-35
- Official Supreme Court Transcript — file page 53, lines 33-15 — Transcript, file page 53, lines 33-15
- Official Supreme Court Transcript — file page 54, lines 27-37 — Transcript, file page 54, lines 27-37
- Official Supreme Court Transcript — file page 24, lines 33-1 — Transcript, file page 24, lines 33-1
- Official Supreme Court Transcript — file page 3, lines 21-13 — Transcript, file page 3, lines 21-13
- Official Supreme Court Transcript — file page 43, lines 37-35 — Transcript, file page 43, lines 37-35
- Official Supreme Court Transcript — file page 53, lines 33-15 — Transcript, file page 53, lines 33-15
- Official Supreme Court Transcript — file page 54, lines 27-37 — Transcript, file page 54, lines 27-37
Revision history
- Revision 1 · Official Transcript ·
Correction: Rewritten to the concise citizen-facing editorial standard.
- Revision 2 · Official Transcript ·
Correction: Migrated to the dated official Court activity contract without model use.