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

Attorney advertising. Brief by Lou Schwartz, Schwartz & Associates, PC, Atlanta, Georgia. Published 2026-09-30; updated 2026-09-30. Responsible attorney: Lou Schwartz. Canonical: https://www.snalawyers.com/insights/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.

## Sources

1. [3rd Circ. Topples Materiality Rule For Securities Suits (Law360)](https://www.law360.com/classaction/articles/2531972)

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