X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

The full case caption appears at the end of this opinion.

Easterbrook, Circuit Judge. According tothe complaint in this securities-fraudaction, James Hofman, a stockbrokerworking for Prudential Securities, told11 of his customers that JeffersonSavings Bancorp was “certain” to beacquired, at a big premium, in the nearfuture. Hofman continued making thisstatement for seven months (repeating itto some clients); it was a lie, for noacquisition was impending. And if thestatement had been the truth, then Hofmanwas inviting unlawful trading on thebasis of material non-public information.He is a securities offender coming orgoing, see Bateman Eichler, HillRichards, Inc. v. Berner, 472 U.S. 299(1985), as are any customers who tradedon what they thought to be confidentialinformation–if Hofman said what theplaintiffs allege, a subject still to bedetermined. What we must decide iswhether the action may proceed, not onbehalf of those who received Hofman’s”news” in person but on behalf ofeveryone who bought Jefferson stockduring the months when Hofman wasmisbehaving. The district judge certifiedsuch a class, invoking the fraud-on-the-market doctrine of Basic, Inc. v.Levinson, 485 U.S. 224, 241-49 (1988).Prudential asks us to entertain aninterlocutory appeal under Fed. R. Civ.P. 23(f). For two reasons, this is anappropriate case for such an appeal,which we now accept. See Blair v. EquifaxCheck Services, Inc., 181 F.3d 832 (7thCir. 1999).

 
Reprints & Licensing
Mentioned in a Law.com story?

License our industry-leading legal content to extend your thought leadership and build your brand.

More From ALM

With this subscription you will receive unlimited access to high quality, online, on-demand premium content from well-respected faculty in the legal industry. This is perfect for attorneys licensed in multiple jurisdictions or for attorneys that have fulfilled their CLE requirement but need to access resourceful information for their practice areas.
View Now
Our Team Account subscription service is for legal teams of four or more attorneys. Each attorney is granted unlimited access to high quality, on-demand premium content from well-respected faculty in the legal industry along with administrative access to easily manage CLE for the entire team.
View Now
Gain access to some of the most knowledgeable and experienced attorneys with our 2 bundle options! Our Compliance bundles are curated by CLE Counselors and include current legal topics and challenges within the industry. Our second option allows you to build your bundle and strategically select the content that pertains to your needs. Both options are priced the same.
View Now
June 20, 2024
Atlanta, GA

The Daily Report is honoring those attorneys and judges who have made a remarkable difference in the legal profession.


Learn More
June 27, 2024
New York

Consulting Magazine identifies consultants that have the biggest impact on their clients, firms and the profession.


Learn More
July 11, 2024
New York, NY

The National Law Journal Elite Trial Lawyers recognizes U.S.-based law firms performing exemplary work on behalf of plaintiffs.


Learn More

Shipman is seeking an associate to join our Labor & Employment practice in our Hartford, New Haven, or Stamford office. Candidates shou...


Apply Now ›

East Brunswick Law firm concentrating in plaintiff's personal injury, employment law, medical malpractice and worker's compensation seeks an...


Apply Now ›

State of New Jersey COMMISSION OF INVESTIGATION 50 WEST STATE STREET PO Box - 045 TRENTON, NEW JERSEY 08625-0045 Telephone (609) 292-6767 Fa...


Apply Now ›
04/29/2024
The National Law Journal

Professional Announcement


View Announcement ›
04/15/2024
Connecticut Law Tribune

MELICK & PORTER, LLP PROMOTES CONNECTICUT PARTNERS HOLLY ROGERS, STEVEN BANKS, and ALEXANDER AHRENS


View Announcement ›
04/11/2024
New Jersey Law Journal

Professional Announcement


View Announcement ›