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Amgen Inc. v. Connecticut Retirement Plans and Trust Funds - Post-Decision SCOTUScast

SCOTUScast 5-14-13 featuring Charles Korsmo
Featuring Charles Korsmo
May 14, 2013

On February 27, 2013 the Supreme Court announced its decision in Amgen Inc. v. Connecticut Retirement Plans and Trust Funds. The question in this case is twofold: (a) whether, in misrepresentation actions under SEC Rule 10-b(5), plaintiffs asserting a fraud-on-the-market theory must prove materiality before they can proceed with a class action, and (b) whether the defendants are permitted to present evidence rebutting a fraud-on-the-market theory at the class certification stage.

In an opinion delivered by Justice Ginsburg, the Court held by a vote of 6-3 that proof of materiality is not necessary for certification of a class-action  that seeks damages for violations of the SEC rule; nor did the lower court err in declining to consider rebuttal evidence at the class-certification stage.  Chief Justice Roberts and Justices Breyer, Alito, Sotomayor and Kagan joined the opinion.  Justice Alito filed a concurring opinion.  Justice Scalia filed a dissenting opinion.  Justice Thomas filed a separate dissenting opinion, which was joined by Justice Kennedy and Justice Scalia in all except Part 1-B.

To discuss the case, we have Charles Korsmo, who is an Assistant Professor at Case Western Reserve University School of Law.

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