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U.S. Supreme Court Drops Securities-Fraud Argument After Sides Say They’re Near a Deal

  • Leidos, investors had said they have settlement in principle
  • Case tested suits over omissions fromm shareholder reports
The American flag flies next to the U.S. Supreme Court in Washington, D.C., U.S.
Photographer: Andrew Harrer/Bloomberg

The U.S. Supreme Court dropped a scheduled securities-fraud clash after the two sides told the justices they are near a settlement.

The high court was scheduled to hear arguments Nov. 6 in a case stemming from a New York City contract fraud and Leidos Inc.’s $500 million settlement with the city in 2012. The case asked the court to clarify investors’ ability to sue companies for omitting information from shareholder reports.