Materiality of a Misrepresentation by a Public Company – The US Supreme Court Has Granted Cert
The US Supreme Court granted certiorari yesterday on a significant issue for securities litigation class actions. The case is a securities claim in the Ninth Circuit against Amgen, and involves Amgen’s statements about product safety for two products.
Scotusblog includes a concise summary of the "materiality" issue, and links to the opinion below and the briefs in the Supreme Court. The grant apparently arises from conflicts between the circuits.
"Issue(s): (1) Whether, in a misrepresentation case under Securities and Exchange Commission Rule 10b-5, the district court must require proof of materiality before certifying a plaintiff class based on the fraud-on-the-market theory; and (2) whether, in such a case, the district court must allow the defendant to present evidence rebutting the applicability of the fraud-on-the-market theory before certifying a plaintiff class based on that theory. (Breyer, J., recused)"