X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
Gay Parks Rainville and Robert Hickok of Pepper Hamilton. Gay Parks Rainville and Robert L. Hickok of Pepper Hamilton.

On Nov. 6, a three-judge panel of the U.S. Court of Appeals for the Second Circuit issued an opinion in Waggoner v. Barclays, No. 16-1912, 2017 U.S. App. LEXIS 22115 (2d Cir. Nov. 6, 2017), that—if allowed to stand—will make it significantly easier for plaintiffs to obtain class certification in actions alleging violations of Section 10(b) of the Securities Exchange Act of 1934, 15 U.S.C. Section 78j(b), and Securities and Exchange Commission Rule 10b-5 (10(b) actions) against large, publicly traded companies. In Waggoner, the court affirmed the district court’s class certification order, holding, inter alia, that “direct evidence of price impact is not always necessary to demonstrate market efficiency, as required to invoke [the fraud-on-the-market presumption of reliance permitted under Basic v. Levinson, 485 U.S. 224 (1988)];” and “defendants seeking to rebut the Basic presumption must do so by a preponderance of the evidence.” The court also agreed with the district court that the plaintiffs’ damages methodology—which the defendants had challenged—“posed no obstacle to certification.” And while the court rejected the district court’s application of the presumption of reliance adopted by the Supreme Court in Affiliated Ute Citizens of Utah v. United States, 406 U.S. 128 (1972), where, unlike the plaintiffs’ claims in Waggoner, the claims of fraud were based primarily on omissions, the court determined that such error was harmless.

This content has been archived. It is available exclusively through our partner LexisNexis®.

To view this content, please continue to Lexis Advance®.

Not a Lexis Advance® Subscriber? Subscribe Now

Why am I seeing this?

LexisNexis® is now the exclusive third party online distributor of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® customers will be able to access and use ALM's content by subscribing to the LexisNexis® services via Lexis Advance®. This includes content from the National Law Journal®, The American Lawyer®, Law Technology News®, The New York Law Journal® and Corporate Counsel®, as well as ALM's other newspapers, directories, legal treatises, published and unpublished court opinions, and other sources of legal information.

ALM's content plays a significant role in your work and research, and now through this alliance LexisNexis® will bring you access to an even more comprehensive collection of legal content.

For questions call 1-877-256-2472 or contact us at customercare@alm.com

 

ALM Legal Publication Newsletters

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2018 ALM Media Properties, LLC. All Rights Reserved.