Amgen Inc. v. Connecticut Retirement Plans and Trust Funds: US Supreme Court Grants Certiorari to Decide Fraud on the Market Action

In Connecticut Retirement Plans and Trust Funds v. Amgen Inc., 660 F.3d 1170 (9th Cir., 11/8/11) (discussed here), the Ninth Circuit Court of Appeals held that the plaintiff in a securities fraud class action need not prove - at the time of certification - that alleged misrepresentations were material in order to invoke the fraud-on-the-market presumption, which provides that buyers of a security have relied on the truthfulness of all public information related to that security.  

On June 11, 2012, the Supreme Court of the United States granted certiorari sub nom. Amgen, Inc. v. Connecticut Retirement Plans and Trust Funds (Case No. 11-1085) to determine the following issues: 

(1) Whether, in a misrepresentation case under Securities and Exchange Commission Rule 10b-5, the district court must require proof of materiality before certifying a plaintiff class based on the fraud-on-the-market theory; and 

(2) Whether, in such a case, the district court must allow the defendant to present evidence rebutting the applicability of the fraud-on-the-market theory before certifying a plaintiff class based on that theory. 

Justice Breyer recused himself. The Court's docket is here.