Supreme Court Grants Cert to Consider Materiality Issue at Class Certification Stage

On June 11 the U.S. Supreme Court granted certiorari in a Rule 10b-5 private action, Amgen v. Connecticut Retirement Plans (Docket No. 11-1085).  The Question Presented is:

1. Whether, in a misrepresentation case under SEC Rule lOb-5, the district
court must require proof of materiality before certifying a plaintiff class based on
the fraud-on-the-market theory.
2. Whether, in such a case, the district court must allow the defendant to
present evidence rebutting the applicability of the fraud-on-the-market theory
before certifying a plaintiff class based on that theory.

Justice Breyer took no part in this decision.

The lower court opinion, from the Ninth Circuit, is reported at 660 F.3d 1170 ( Download Amgen v. ConnRetPlan.9Cir)