Split Panel’s Ruling In Securities Suit Negates Basic Holding, Amici Argue

Mealey's (May 27, 2020, 9:05 AM EDT) -- NEW YORK — Review of a split panel decision upholding a federal district court’s application of the inflation-maintenance theory for demonstrating price impact in granting class certification in a securities class action lawsuit is necessary because the ruling has virtually eliminated the ability for defendants to rebut fraud-on-the-market presumption as established in Basic v. Levinson, a group of former Securities and Exchange Commission officials and law professors argue in a May 22 amicus curiae brief filed in the Second Circuit U.S. Court of Appeals (Arkansas Teacher Retirement System, et al. v. Goldman Sachs Group Inc., et al., No. 18-3667, 2nd Cir.)....