Widening The Class Certification Circuit Split

Law360, New York (December 14, 2011, 3:05 PM EST) -- The U.S. Court of Appeals for the Ninth Circuit has joined the Third and the Seventh in concluding that, at the class certification stage, plaintiffs in a securities fraud damage action need not prove materiality to utilize the fraud-on-the-market. Three other circuits take a contrary view.

The Ninth Circuit also held that the district court correctly rejected defendants’ efforts to rebut the fraud-on-the-market presumption with evidence of a “truth-on-the-market” defense at the certification stage. Connecticut Retirement Plans and Trust funds v. Amegen Inc., No. 09-56965 (9th...
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