Quotes · Quote card
Quotation from TSC Industries, Inc. v. Northway, Inc. by Supreme Court of the United States
“management's fear of exposing itself to substantial liability may cause it simply to bury the shareholders in an avalanche of trivial information a result that is hardly conducive to informed decisionmaking.”
TSC Industries, Inc. v. Northway, Inc., Opinion of the Court (Justice Marshall), Part II-C (U.S. Reports text (Legal Information Institute))
Justice Marshall describes what a materiality standard set too low would produce.
Citation: "management's fear of exposing itself to substantial liability may cause it simply to bury the shareholders in an avalanche of trivial information a result that is hardly conducive to informed decisionmaking." — Supreme Court of the United States, TSC Industries, Inc. v. Northway, Inc., Opinion of the Court (Justice Marshall), Part II-C (U.S. Reports text (Legal Information Institute)). (id tsc-industries-v-northway-q3)
Portrait: Thurgood-marshall-2, Robert S. Oakes, Public domain.
