WASHINGTON (Reuters) - The U.S. Supreme Court on Monday sent a securities class action case against Dutch bank ING Groep NV and others back to a lower court to reconsider in light of the justices’ ruling last week in a case involving pharmacy services company Omnicare.
The high court threw out a November 2013 decision by the New York-based 2nd U.S. Circuit Court of Appeals in favor of ING and several banks.
In the Omnicarecase, the high court found that shareholders cannot sue public companies for issuing statements ahead of a public stock offering simply because they turn out to be untrue.
In the ING case, investors had claimed that the Dutch bank and the other banks that handled a stock offering in September 2007 had violated a provision of the securities laws that prohibits untrue statements made in registration statements filed with the U.S. Securities and Exchange Commission.
The February 2009 lawsuit claimed that ING concealed the risky nature of mortgage-backed securities that it held at the time of the offering.
A district court judge threw out the lawsuit and the appeals court upheld that finding.
The case is Freidus v. ING Groep, U.S. Supreme Court, 13-1505.
Reporting by Lawrence Hurley; Editing by Will Dunham