Tag Archives: fraud on the market

Basic Is Anything But: Courts Continue to Wrangle with the Fraud-on-the-Market Presumption

Co-authors: Mark Kornfeld and Deborah Renner Editors’ Note: This post has also been published as a BakerHostetler Client Alert. It has been 25 years since the Supreme Court announced the fraud-on-the-market presumption of reliance in Basic Inc. v. Levinson, 485 U.S. 224 (1988). Yet many courts, including the Supreme Court itself, continue to struggle in … Continue Reading

A Big Week for the Securities Bar: Amgen and Gabelli

By Deborah Renner on March 13, 2013 Posted in Class Certification, Commonality, Injunctions, Practice Pointers, Predominance, Securities

Co-authored by: Marc D. Powers, Mark A. Kornfeld, and Jessie M Gabriel Editor’s Note: This Executive Alert was published by members of BakerHostetler’s Securities Litigation and Regulatory Enforcement Team and BakerHostetler’s Class Action Team. The Supreme Court last week issued two opinions of major importance to the securities bar. In Amgen Inc. v. Connecticut Retirement … Continue Reading

Materiality Can Wait, Says the Supreme Court in Amgen

By Paul Karlsgodt on February 27, 2013 Posted in Class Certification, Securities

The following post is reprinted with permission from Paul Karlsgodt’s blog, www.classactionblawg.com. Stay tuned over the coming days for more in-depth analysis of the Amgen decision and its potential implications for securities class actions and class actions more generally. The Supreme Court has issued its opinion in one of the most highly anticipated class action-related cases on … Continue Reading

Amgen Argument Points Up Split in Supreme Court on Class Certification Versus Merits Issues

By Deborah Renner on November 30, 2012 Posted in Class Action Trends, Securities

On November 5, 2012, the U.S. Supreme Court heard argument in Amgen, Inc. v. Connecticut Retirement Plans and Trust Funds, No. 1085, a securities class action, that concerned the ongoing question of what evidence is required at the class certification stage of a case as opposed to the merits phase of a case. (See our blog … Continue Reading

Is “Materiality” a Class Certification or Merits Issue?

By Patrick T. Lewis on July 12, 2012 Posted in Class Action Trends, Class Certification, Securities

Contributing Author: Taylor Jackson The Supreme Court agreed last month to hear an appeal from a Ninth Circuit case, Conn. Retirement Plans & Trust Funds v. Amgen, Inc., 660 F.3d 1170 (9th Cir. 2011), that affirmed an order certifying a securities fraud class based on the fraud-on-the-market theory. Plaintiffs alleged Amgen misrepresented the safety of … Continue Reading

Southern District of New York Applies Daubert and Denies Class Certification in Securities Case

By Jessie M. Gabriel on April 4, 2012 Posted in Class Action Trends, Class Certification, Predominance, Securities

Continuing the trend in the Second Circuit since the IPO decision for courts to “rigorously” determine whether class certification is appropriate, on March 27, 2012, Judge Miriam Cederbaum of the United States District Court for the Southern District of New York denied plaintiff’s motion for class certification in the putative class action brought against Freddie … Continue Reading

Fraud-on-the-Market Allowed by Third Circuit to Certify Class in a Ruling That Differs Sharply From Fifth Circuit

By Michael Matthias on January 2, 2012 Posted in Rule 23 Requirements, Securities

In In re DVI, Inc. Securities Litigation, 639 F.3d 623 (3d Cir. 2011), the Third Circuit affirmed the district court’s holding that common class issues predominated over individual issues. The Third Circuit found that the district court had correctly invoked the fraud-on-the-market presumption of reliance to partially grant plaintiffs’ certification motion. Investors of DVI, a … Continue Reading