The Supreme Court Considers Proof Required for Class Certification under Rule 10b-5
The Supreme Court heard oral arguments this past Monday in Amgen Inc., et al. v. Connecticut Retirement Plans, No. 11-1085, concerning the level of proof required to certify class actions brought under SEC Rule 10b-5, pursuant to Section 10(b) of the Securities and Exchange Act of 1934. The Court is expected to decide (1) whether a plaintiff class relying on fraud-on-the-market theory must prove that defendant’s misrepresentations were material before a class can be certified; and (2) whether, in such a case, the defendant must be allowed to rebut such evidence before the class can be certified.