This year, on the heels of its rulings in Erica P. John Fund, Inc. v. Halliburton (2011) and Wal-Mart Stores, Inc. v. Dukes (2011), the Supreme Court has issued several opinions affecting securities fraud litigation. Of particular note, Amgen, Inc. v. Connecticut Retirement Plans and Trust Funds held that proof of materiality was not required at the class certification stage for an action based on the fraud on the market (FOTM) theory. On 24 July 2013, NERA Senior Vice President Dr. David Tabak participated in a Securities Docket webcast that examined this recent Supreme Court decision, along with Jordan Eth and Deanne E. Maynard, partners at Morrison & Foerster LLP. The panel discussed the possible implications of four Supreme Court Justices suggesting a willingness to revisit whether the FOTM presumption of reliance is still proper, as revisiting this theory could have a dramatic effect on securities litigation. The panel also discussed other recent Supreme Court cases and how they could affect parties in both private securities class actions and government enforcement actions.
Learn more and listen to a recording of this webcast via the Securities Docket website.