Third Circuit scraps stock-price materiality rule, revives Ocugen suit

On September 30, 2026, the Third Circuit revived a securities fraud class action against Ocugen Inc. and abandoned its long-standing rule that a stock price's failure to move after a corrective disclosure conclusively shows that an alleged misstatement was immaterial. Law360 described the ruling as "scrapping a decades-old circuit rule." The allegations against Ocugen have not been adjudicated on the merits, and the case returns to the district court.

Why it matters. By rejecting a bright-line stock-price test for materiality, the ruling makes it harder for securities defendants in the Third Circuit to win dismissal simply because a stock price did not move after a corrective disclosure, which could help plaintiffs survive motions to dismiss in future cases.