We are pleased to share the most recent edition of the Simpson Thacher Securities Law Alert, edited by litigation Partners Jonathan Youngwood, Peter Kazanoff, and Paul Gluckow. The following is a summary of the March 2013 edition of the Alert:
This month’s Alert discusses three Supreme Court decisions handed down in the past several weeks. In Amgen Inc. v. Connecticut Retirement Plans & Trust Funds, the Court held that plaintiffs do not have to prove materiality to obtain class certification in fraud-on-the-market cases brought under Section 10(b) and Rule 10b-5. In Standard Fire Ins. Co. v. Knowles, the Court held that a plaintiff in a proposed class action cannot avoid removal under the Class Action Fairness Act of 2005 (“CAFA”) by stipulating to damages of less than $5 million. And in Gabelli v. SEC, the Court held that Section 2462’s limitations period for government penalty actions begins to run in fraud cases when the allegedly fraudulent conduct occurs, not when it is discovered.
We also address an Eleventh Circuit decision affirming dismissal of a securities fraud action brought under Section 10(b) and Rule 10b-5 against the St. Joe Company on the ground that the plaintiffs had failed to plead loss causation.
In addition, we discuss a ruling from a hearing panel of the Financial Industry Regulatory Authority, Inc. (“FINRA”) holding that class action waivers in pre-dispute arbitration agreements with brokerage customers are enforceable notwithstanding FINRA rules to the contrary.
Click here to read the complete Simpson Thacher Securities Law Alert.