Corporate Litigation: Rebuttal of the Fraud on the Market Presumption of Reliance
In their Corporate Litigation column published in the New York Law Journal, Litigation Partner Joe McLaughlin and Associate Shannon McGovern discuss the Second Circuit Court of Appeals class certification decision in Waggoner v. Barclays PLC, which in a matter of first impression held that direct evidence of price impact is not always necessary to demonstrate market efficiency under the fraud on the market presumption of reliance. The article also analyzes the court’s determination that a defendant’s burden in seeking to rebut the presumption is one of persuasion (not production) and defendant must show the absence of price impact by a preponderance of the evidence.