The court of appeals affirmed a judgment. The court held that the presumption of reliance afforded securities fraud claims alleging omission of material information did not apply where a plaintiff’s fraud claims alleged primarily manipulative conduct.
Amish Desai and other individual investors (Desai) brought a putative securities fraud class action against Deutsche Bank AG and related entities (Deutsche Bank). Desai alleged that Deutsche Bank masterminded a stock price manipulation scheme in which various parties used “securities loans” to maximize their profits in conjunction with their ongoing attempt to artificially raise the stock price of Genesis Intermedia, Inc. (GENI).
