Supreme Court issues major securities class action ruling
01 March 2013U.S. Supreme Court and Appellate Alert
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.