During its recently concluded October 2012 term, the Supreme Court of the United States decided seven cases that are likely to have a significant impact on class action practice. This term’s decisions addressed evidentiary standards for class certification, materiality in securities fraud class actions, jurisdiction under the Class Action Fairness Act, offers of judgment, the enforceability of class action waivers in arbitration clauses, and the use of state DMV databases to identify and solicit potential class action plaintiffs.
The October 2012 term decisions impacting class actions are discussed briefly below (with links to the Sutherland Legal Alerts on each case), followed by a summary of several cases the Supreme Court will hear during its October 2013 term that could resolve circuit splits on issues affecting class actions and derivative actions.
October 2012 Term -
Amgen, Inc. v. Connecticut Retirement Plans and Trust Funds, No. 11-1085 -
The Supreme Court affirmed certification of a federal securities fraud class action in Amgen, Inc. v. Connecticut Retirement Plans and Trust Funds. The Court held that, in a securities fraud class action based on the “fraud on the market theory,” class plaintiffs are not required affirmatively to prove materiality at the class certification stage. Rather, materiality is a question common to all members of the class in determining whether common issues predominate.
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