Case Study: Weiner v. Tivity Health, Inc.
This case study focuses on precisely what constitutes securities fraud. The board of a company failed to disclose that its client would be going into competition with it, though it had known this was in the works and growing more and more likely for a year and a half. When the information finally did become public, the company's stock cratered and the shareholders filed a class-action lawsuit. The court had to apply and carefully analyze the many elements of securities fraud and decide whether withholding this information from the market constituted a material misrepresentation under securities fraud laws.
The case can be found here: