A U.S. Court of Appeals for the Second Circuit panel Wednesday rejected attempts by a plaintiff to assert a First Circuit standard for securities fraud cases dealing with the disclosure of information to investors.
In its decision in Stadnick v. Vivint Solar, 16-65, the panel said the “extreme departure” standard under Shaw v. Digital Equipment, 82 F.3d 1194, “is not the operative test in this circuit.” Circuit Judge John Walker Jr., writing for the panel, said the “operative test remains” the “total mix” standard in DeMaria v. Andersen, 318 F.3d 170, setting up a circuit split on the issue.
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