Securities Law Alert, June 2012
This month’s Alert discusses the Supreme Court’s grant of certiorari in Amgen, Inc. v. Connecticut Retirement Plans and Trust Funds, to address the question of whether plaintiffs must prove materiality to qualify for the fraud-on-the-market presumption of reliance at the class certification stage. We also discuss a First Circuit decision affirming the dismissal of a securities fraud action against Textron; a Second Circuit ruling addressing the standard for pleading a failure to disclose “known uncertainties” under Item 303 of Regulation S-K; and an Eighth Circuit decision reversing the dismissal of a securities fraud action against KV Pharmaceutical Company. Finally, we review a Delaware Chancery Court opinion holding that collateral estoppel does not mandate the dismissal of a derivative suit brought by Allergan shareholders.
We wish you and yours a wonderful July 4th holiday.