How Presumption Of Reliance May Violate Due Process

Law360, New York (September 10, 2013, 3:48 PM EDT) -- For decades, courts in some fraud cases have certified class actions on the basis of a “presumption of reliance.” This presumption acknowledges the usually individualized nature of reliance but holds that uniform reliance can be presumed when the alleged fraud reaches the entire class and is objectively material.

And on the basis of that presumption, the individualized reliance or causation issues that would ordinarily make class treatment impossible are deemed common — capable of resolution along with the question of materiality itself — and thus, no...
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