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The Fraud-on-the-Market Presumption of Reliance Revisited: Supreme Court Hears Oral Argument in Amgen Inc. v. Connecticut Retirement Plans and Trust Funds

On Monday, November 5, 2012, the Supreme Court heard arguments in Amgen Inc. v. Connecticut Retirement Plans and Trust Funds, a matter that will decide whether plaintiffs in federal securities fraud actions must establish materiality before obtaining class certification. At issue is the ''fraud-on-the-market'' presumption of reliance adopted by the Supreme Court in Basic v. Levinson and left open last year in Erica P. John Fund Inc. v. Halliburton Co. Amgen has the potential to significantly alter the class certification process in securities actions by tightening certification standards in those cases.

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