The Sidebar: Supreme Court of the United States

The case Facebook v. Amalgamated Bank. The case centers on whether risk disclosures in financial statements are misleading by omission if they don't mention past occurrences of the described risk. The petitioners argue that such omissions are only misleading if they create an implied representation about the past, while the respondents contend that omissions can be misleading even without explicit misrepresentation, depending on context and materiality. The justices extensively questioned both sides, exploring various hypotheticals to clarify the boundaries of securities liability for omissions in risk disclosures. The debate ultimately hinges on the interpretation of reasonable investor expectations and the interplay between materiality and falsity in securities law.