The U.S. Supreme Court case Realty Associates Securities Corp. et al. v. O'Connor et al., 1934, revolved around a dispute over the sale of bonds and whether or not it constituted fraud under federal law (Securities Act of 1933). The plaintiffs, Realty Associates Securities Corporation and others, alleged that they were induced to purchase bonds from the defendants through fraudulent misrepresentations about their value and security. The defendants argued that no actionable fraud had occurred because all statements made were true at the time they were given. However, in its decision, the Supreme Court held that even if all representations made by sellers are accurate when given but become false due to subsequent events before delivery is completed - such as changes in financial conditions - then there exists an obligation on part of seller to disclose these changed circumstances to buyer prior closing deal; failure which amounts to fraud under federal securities laws. This ruling significantly expanded scope for what could be considered fraudulent behavior within context of securities transactions by recognizing duty for continuous disclosure until transaction completion.

The dissenting opinion in the case of Realty Associates Securities Corp. et al. v. O'Connor et al., 1934, argued that the majority's decision was a departure from established principles and precedent regarding corporate liability for fraudulent misrepresentation under New York law. The dissent contended that it was not necessary to prove actual reliance on false statements by each individual shareholder in order to establish collective harm caused by fraud perpetrated against a corporation as an entity itself, which then indirectly harmed its shareholders through devaluation of their shares or other financial losses. Furthermore, they disagreed with the majority's interpretation of "proximate cause," arguing instead that any act contributing materially to injury should be considered proximately causative if it played a substantial part in bringing about or actually causing injury or damage; and so also are those acts without which the harm would not have occurred.