Today, the Supreme Court granted certiorari in the following cases of interest to the business community:

Bankruptcy Code—Insider Status

U.S. Bank N.A. v. Village at Lakeridge, LLC, No. 15-1509

The Bankruptcy Code affords special treatment to creditors who are considered "insiders" under the Code. The Code provides that, before a Chapter 11 plan of reorganization may be approved, at least one class of impaired claims must vote in favor of the plan, determined "without including any acceptance of the plan by any insider." 11 U.S.C. § 1129(a)(10). The Supreme Court has granted certiorari to resolve a circuit split over whether a bankruptcy court's determination of insider status with respect to a particular claimholder should be reviewed de novo or for clear error.

Securities Exchange Act of 1934—Duty to Disclose

Leidos, Inc. v. Indiana Pub. Ret. Sys., No. 16-581

Section 10(b) of the Securities Exchange Act of 1934 and accompanying SEC Rule 10b-5 prohibit fraud in connection with the purchase or sale of securities. Item 303 of SEC Regulation S-K requires that certain public filings, including quarterly and annual reports, contain a discussion and analysis of the company's financial condition and results of operations. 17 C.F.R. § 229.303(a). The Supreme Court has granted certiorari to resolve a circuit split over whether Item 303 creates a duty to disclose that is actionable under Section 10(b) and Rule 10b-5.

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