The US Supreme Court agreed on Friday to review the issue of whether shareholders can bring class action lawsuits that allege securities fraud.
In Goldman Sachs Group, Inc. v. Arkansas Teacher Retirement, the questions the court has agreed to address are:
- Whether a defendant in a securities class action may rebut the presumption of classwide reliance recognized in Basic Inc. v. Levinson, 485 U.S. 224 (1988), by pointing to the generic nature of the alleged misstatements in showing that the statements had no impact on the price of the security, even though that evidence is also relevant to the substantive element of materiality.
