Supreme Court Rules that Courts Should Determine the Materiality of Alleged Misrepresentations at the Class Certification Stage in Private Securities Litigation
On June 21, 2021, the Supreme Court in Goldman Sachs Group, Inc., et al. v. Arkansas Teachers Retirement System, ruled in favor of Goldman Sachs in a securities-fraud class action lawsuit brought by investors. The plaintiffs alleged that Goldman Sachs maintained an artificially inflated stock price by making generic false statements in connection with their sales of securities, until the truth about Goldman Sachs’ practices were made public and the market reacted, resulting in losses to the plaintiffs.
The plaintiffs sought to certify a class of Goldman Sachs shareholders that relied on such misrepresentations when investing in its […]