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Quotation from Basic Inc. v. Levinson by Supreme Court of the United States
“Under such circumstances, materiality "will depend at any given time upon a balancing of both the indicated probability that the event will occur and the anticipated magnitude of the event in light of the totality of the company activity.”
Basic Inc. v. Levinson, Opinion of the Court (Justice Blackmun), Part III (U.S. Reports text (Legal Information Institute))
Justice Blackmun adopts, quoting the Second Circuit's Texas Gulf Sulphur decision, the probability-magnitude test for contingent events.
Citation: "Under such circumstances, materiality "will depend at any given time upon a balancing of both the indicated probability that the event will occur and the anticipated magnitude of the event in light of the totality of the company activity." — Supreme Court of the United States, Basic Inc. v. Levinson, Opinion of the Court (Justice Blackmun), Part III (U.S. Reports text (Legal Information Institute)). (id basic-inc-v-levinson-q2)
Portrait: Justice Blackmun Official, Unknown, Public domain.
