On February 27, 2013, the Supreme Court handed down its decision in Amgen Inc. v. Connecticut Retirement Plans & Trust Funds, No. 11-1085 (U.S. Feb. 27, 2013). In a six to three decision, the Court held that plaintiffs asserting claims for violations of Section 10(b) of the Securities Exchange Act of 1934 need not, at the class certification stage of a proceeding, prove that alleged misrepresentations were material in order to avail themselves of the fraud on the market presumption in establishing predominance under Federal Rule of Civil Procedure 23(b)(3). The Court further held that defendants could not rebut the fraud on the market presumption at the class certification stage solely by establishing that such misrepresentations were immaterial (e.g., through the “truth-on-the-market” defense).
View full memo, "Supreme Court Decides AMGEN – Allows Plaintiff Class to be Certified Without Separate Materiality Inquiry"