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Supreme Court Hears Challenge to Fraud-on-the-Market Presumption in Securities Fraud Litigation

When the U.S. Supreme Court 25 years ago decided <i>Basic, Inc. v. Levinson</i>, it adopted a legal theory that commentators would describe as revolutionizing securities law in the United States. By accepting the "fraud-on-the-market" theory, the <i>Basic</i> Court made it much easier for plaintiffs to get their cases certified as class actions, increasing the potential exposure of corporations and their officers and directors.

25 minute read February 28, 2014 at 11:00 PM
By
Eric Rieder
Supreme Court Hears Challenge to Fraud-on-the-Market Presumption in Securities Fraud Litigation

When the U.S. Supreme Court 25 years ago decided Basic, Inc. v. Levinson, 485 U.S. 224 (1988), it adopted a legal theory that commentators would describe as revolutionizing securities law in the United States.

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