Securities Law Alert, November 2012
This month’s Alert addresses the oral argument before the Supreme Court in Amgen, Inc. v. Connecticut Retirement Plans and Trust Funds, a case in which the Court is considering whether plaintiffs must establish materiality to win class certification under the fraud-on-the-market theory of reliance.
We also discuss a Southern District of New York decision finding allegations of internal control-related misrepresentations sufficient to state a Section 10(b) claim on a stand-alone basis; as well as a Western District of Texas decision holding that the SEC may bring a claim to claw back executive bonus and incentive compensation under Section 304 of the Sarbanes-Oxley Act without alleging misconduct or scienter.
Finally, we address a Southern District of Ohio decision holding that a “no reliance” clause precludes a sophisticated investor from bringing fraud and negligent misrepresentation claims against Credit Suisse Securities.