Member Article

The Fifth Circuit has issued an important opinion on Section 11 of the Securities Act which may limit the potential exposure of issuers and other participants for alleged misrepresentations and omissions in public offering registration statements. The Court’s opinion in Krim v. pcOrder.com, Inc., is the first Circuit Court opinion to address whether evidence of statistical probability can be used by aftermarket purchasers to “trace” their securities to a public offering to gain standing to sue under Section 11. Haynes and Boone, LLP, acted as lead litigation counsel in this matter, and argued for all defendant parties before the Fifth Circuit Court of Appeals, representing Trilogy Software, Inc., the parent company of pcOrder.com.