Opinion ID: 784557
Heading Depth: 3
Heading Rank: 1

Heading: Standards for Material Misrepresentation or Omission

Text: 10 To allege a false statement or omission of material fact, a plaintiff must point to a factual statement or omission — that is, one that is demonstrable as being true or false. Longman v. Food Lion, Inc., 197 F.3d 675, 682 (4th Cir.1999). Additionally, the plaintiff must allege that the statement is false or that the omitted fact renders a public statement misleading. See id. And, any statement or omission of fact must be material,  i.e., there must be a substantial likelihood that a reasonable purchaser or seller of a security (1) would consider the fact important in deciding whether to buy or sell the security or (2) would have viewed the total mix of information made available to be significantly altered by disclosure of the fact. Id. at 682-83. Under the PSLRA, the complaint must specify each statement alleged to have been misleading, the reason or reasons why the statement is misleading, and, if an allegation regarding the statement or omission is made on information and belief, ... state with particularity all facts on which that belief is formed. 15 U.S.C.A. § 78u-4(b)(1).