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Full-Text Articles in Securities Law
The Unreasonableness Of Reasonable: Rethinking The Reasonable Investor Standard, Alexandra Li
The Unreasonableness Of Reasonable: Rethinking The Reasonable Investor Standard, Alexandra Li
Northwestern University Law Review
This Note explores the “reasonable investor” standard in light of recent developments in pandemic-era securities litigation. Scholars have long criticized the reasonable investor standard for determining materiality. Given the dramatic backdrop of the COVID-19 pandemic, the limitations of the standard are becoming ever more evident. This Note provides a brief history of the development of the current standard and highlights some of its problems through two recent COVID-19 securities fraud cases. This Note argues that the reasonable investor standard is no longer sufficient to protect investors. Through examining tort law and First Amendment jurisprudence, this Note differentiates between the “reasonable” …
Jury Certification Of Federal Securities Fraud Class Actions, Thomas Kayes
Jury Certification Of Federal Securities Fraud Class Actions, Thomas Kayes
Northwestern University Law Review
The rough equivalence of certification and ultimate outcome is class action dogma. If certification is granted, then the plaintiff “wins” by settlement because the risk of incurring class-wide liability by going to trial is too great. If certification is denied, the defendant “wins” because the case may not be worth litigating without the possibility of a class-wide recovery. This Note is about where the dogma is wrong. There are now cases where a denial of certification, just like a grant, presents to the defendant the risk of incurring class-wide liability at trial. This is because those cases are capable of …