Supreme Court issues major securities class action ruling

On Wednesday, the Supreme Court held that plaintiffs in securities fraud cases do not have to establish materiality before a class can be certified based on the “fraud-on-the-market” theory. Instead, in Amgen Inc. v. Connecticut Retirement Plans and Trust Funds, six Justices agreed that materiality is a substantive element of plaintiffs’ fraud claim that can be postponed until summary judgment or trial because it can always be addressed with common proof.

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