Tag Archives: presumption of reliance

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

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

Ninth Circuit Affirms That One State’s Laws Cannot Apply to a Nationwide Class and That a Presumption of Reliance Was Improper

By Rodger Eckelberry on February 2, 2012 Posted in Consumer Fraud, Rule 23 Requirements

In Mazza v. American Honda Motor Company, Inc., 666 F.3d 581 (9th Cir. 2012), the Ninth Circuit reversed certification of a nationwide class of automobile consumers, rejecting the district court’s choice of law and predominance analyses. Though a split-decision, the Mazza majority reinforced states’ individual interests and ability to regulate consumer transactions occurring within their … Continue Reading