High Court Should Review Goldman's Maintenance Theory
Law360 (June 24, 2020, 6:12 PM EDT) -- Now that the full U.S. Court of Appeals for the Second Circuit has denied rehearing in Arkansas Teacher Retirement System v. Goldman Sachs Group Inc., the U.S. Supreme Court should grant certiorari to review the Second Circuit's flawed "inflation maintenance" theory of price impact.
Inflation maintenance is a theory endorsed by the Second Circuit in certain Rule 10b-5 class actions that supposes that alleged misstatements affect a stock price not by artificially inflating it, but by maintaining preexisting inflation.
In recent years, the theory has become increasingly popular among securities plaintiffs seeking to lower the bar to class certification. In Goldman,...
Stay ahead of the curve
In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.
Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
Create custom alerts for specific article and case topics and so much more!