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SCOTUS Decision Helps Shareholders Pursue Class Actions

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In a move that’s out of sync with a recent spate of decisions making class actions more difficult to pursue, the U.S. Supreme Court last week held that shareholders may pursue securities class actions without first having to prove the defendant company’s actions actually affected the company’s share price, according to a Bloomberg article.

Shareholders will still have to prove that the actions at issue in the case materially affected the price of the stock, but judges will no longer have to determine whether claimants have proven that fact before letting investors band together in a class action lawsuit.

The Court issued the decision in the context of upholding a 9th U.S. Circuit Court of Appeals decision that allowed a shareholder class action suit against the biotechnology company Amgen to proceed.

Read the full Bloomberg article here.

U.S. Supreme Court building.

U.S. Supreme Court building

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