Securities and Exchange Act of 1934, Section 10b-5 [1]. You'll commonly see this shortened to just "10b-5" in common parlance. There's quite a large industry [

Securities and Exchange Act of 1934, Section 10b-5 [1]. You'll commonly see this shortened to just "10b-5" in common parlance. There's quite a large industry [2] involving lawsuits anytime someone can credibly claim that an executive knew or (the real kicker) should have known they were making a false statement. The vast majority of cases settle - there's rigorous and standardized models for computing how much to settle for. The special thing in this case is how it's actually gone to trial. [1] https://www.investopedia.com/terms/r/rule10b5.asp https://www.investopedia.com/terms/r/rule10b5.asp [2] https://securities.stanford.edu/ https://securities.stanford.edu/ Edit: The specific case here is https://securities.stanford.edu/filings-case.html?id=106701 https://securities.stanford.edu/filings-case.html?id=106701 (Docket 18-CV-04865)