Open Access. Powered by Scholars. Published by Universities.®
10b5; Amgen; Class Actions; Basic; Blackmun; Brennan; Deceit; Dura; Economic Loss; Fraud; Fraud on the Market; Loss Causation; Scienter; Securities Fraud; Tort
Articles 1 - 1 of 1
Full-Text Articles in Law
The Fraud-On-The-Market Tort, John C.P. Goldberg, Benjamin C. Zipursky
The Fraud-On-The-Market Tort, John C.P. Goldberg, Benjamin C. Zipursky
Faculty Scholarship
Fraud on the market is at the core of contemporary securities law, permitting 10b-5 class actions to proceed without direct proof of investor reliance on a misrepresentation. Yet the ambiguities of this idea have fractured the Supreme Court from its initial recognition of the doctrine in Basic v. Levinson to its recent decision in Amgen, Inc. v. Connecticut Retirement Plans and Trust Funds. Amidst divergent views of the coherence and advisability of liability for fraud on the market a fundamental question lurks: is a suit for damages that invokes the fraud-on-the-market theory a claim for common law deceit, such that …