On February 27, 2013, the US Supreme Court decided Amgen Inc. v. Connecticut Retirement Plans and Trust Funds, 568 US ___ (2013), a securities fraud class action against Amgen Inc., one of the world's largest independent biotechnology companies. In a 6-3 decision, the Court ruled that at the class-certification stage—i.e., well before any trial in the case— plaintiffs in securities fraud suits are not required to prove that alleged misrepresentations or omissions were material in order to use the fraud-on-the-market presumption to establish that common questions predominate as to the proposed class. The Court further held that courts need not consider at the class-certification stage evidence put forward by defendants challenging the materiality of such misrepresentations or omissions. Although a (rare) victory for the plaintiffs' class action bar, plaintiffs in securities cases still face significant hurdles in moving class action securities cases forward. Hence, it is unclear whether Amgen will significantly alter the dynamics of large securities fraud cases.
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