Supreme Court Rejects Proof of Materiality as Requirement for Certifying Securities Class Actions

28 February 2013
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  • The Supreme Court ruled yesterday that plaintiffs in securities class actions can obtain class certification without first proving that the allegedly false statements were material.
  • The ruling resolves a Circuit split that had created the possibility that defendants in some jurisdictions could meaningfully challenge class certification on materiality grounds, and reinforces the difficulties that defendants face in attempting to defeat class certification in securities actions.