Last year, the putative securities fraud class action brought against the Goldman Sachs Group, Inc., which had been litigated for 13 years, ended quietly via an agreement by the parties. The plaintiffs agreed to dismiss all claims with prejudice, with the parties to bear their own costs. The plaintiffs, thus, walked away with no recovery or settlement, despite having three times achieved certification of an investor class before the U.S. district court. The plaintiffs had also defended certification in a record three appeals to the U.S. Court of Appeals for the Second Circuit and an appeal to the U.S. Supreme Court.

The fact that this ongoing class certification saga came to an end with so little fanfare obscures the importance of the “final word” on class certification we are left with in the case. On Aug. 10, 2023, the Second Circuit issued what turned out to be the final opinion on certification in Arkansas Teacher Retirement System v. Goldman Sachs Group. The Second Circuit vacated the most recent certification order by the district court and remanded with instructions to decertify the class.