Among the requirements for certifying a class is that the “claims or defenses of the representative parties are typical of the claims or defenses of the class,” and “the representatives will fairly and adequately protect the interests of the class.” PTI argued that the proposed plaintiff class could not meet these elements because the general partner of the lead plaintiff was a sophisticated investor. In rejecting the argument and certifying the class, the court found that Congress, in the Private Securities Litigation Reform Act, expressed a desire for sophisticated plaintiffs in class action securities case. The court found that the plaintiff’s “sophistication makes it more suitable to serve as a lead plaintiff, not less.”
KB Partners I, L.P. v. Barbier, No. A-11-CA-1034-SS, 2013 WL 2443217 (W.D. Tex. 2013).