Securities Law Alert, May 2013
This month’s Alert addresses three decisions from circuit courts: a Second Circuit opinion holding that plaintiffs must allege a misrepresentation to state a market manipulation claim under Section 10(b); a Fifth Circuit decision holding that defendants may not rebut the fraud-on-the-market presumption of reliance with price impact evidence at the class certification stage; and a Sixth Circuit decision rejecting the Second Circuit’s holding in Fait v. Regions Fin. Corp. and ruling that plaintiffs need not plead knowledge of falsity to state a Section 11 claim.
We also discuss two decisions from the Southern District of New York, one relying on the Second Circuit’s holding in Fait to dismiss Securities Act claims against AIG, and another dismissing a LIBOR-related securities fraud action against Barclays.