October Term 2010 · Docket 09-1403
Can defendants prove no price impact before class certification?
Investors seek class status. The company argues individual reliance issues block certification.
Verified source milestones
- — An official oral-argument transcript was verified.
The arguments, in order
This case may have been argued more than once. Each entry below uses that session's official transcript. Later arguments do not erase earlier ones.
Argument 1 ·
What happened at the argument
Mr. Boies argued the district court found Rule 23(a) requirements met. He stated the plaintiff fulfilled all certification requirements.
Mr. Sterling argued individual reliance issues predominate. He cited Basic to support this view.
Justice Ginsburg asked how the class would prove loss causation. She noted this issue usually arises at trial.
Read the official transcript for this argument · Official argument details
Sources used for this argument breakdown
- Official Supreme Court Transcript — file page 15, lines 3-21 — Transcript, file page 15, lines 3-21
- Official Supreme Court Transcript — file page 25, lines 9-25 — Transcript, file page 25, lines 9-25
- Official Supreme Court Transcript — file page 3, lines 19-43 — Transcript, file page 3, lines 19-43
- Official Supreme Court Transcript — file page 3, lines 45-47 — Transcript, file page 3, lines 45-47
- Official Supreme Court Transcript — file page 3, lines 51-5 — Transcript, file page 3, lines 51-5
- Official Supreme Court Transcript — file page 3, lines 7-17 — Transcript, file page 3, lines 7-17
- Official Supreme Court Transcript — file page 4, lines 11-17 — Transcript, file page 4, lines 11-17
- Official Supreme Court Transcript — file page 4, lines 37-39 — Transcript, file page 4, lines 37-39
- Official Supreme Court Transcript — file page 4, lines 49-7 — Transcript, file page 4, lines 49-7
- Official Supreme Court Transcript — file page 5, lines 27-31 — Transcript, file page 5, lines 27-31
- Official Supreme Court Transcript — file page 5, lines 35-39 — Transcript, file page 5, lines 35-39
- Official Supreme Court Transcript — file page 6, lines 15-17 — Transcript, file page 6, lines 15-17
- Official Supreme Court Transcript — file page 6, lines 21-29 — Transcript, file page 6, lines 21-29
- Official Supreme Court Transcript — file page 6, lines 3-7 — Transcript, file page 6, lines 3-7
- Official Supreme Court Transcript — file page 6, lines 35-37 — Transcript, file page 6, lines 35-37
- Official Supreme Court Transcript — file page 7, lines 7-23 — Transcript, file page 7, lines 7-23
A citizen's guide to the whole case
What this case is about
This case tests when courts must resolve reliance and price impact. the side that brought the case wants class certification. the opposing side wants to defeat it early.
Official sources for this section
- Official Supreme Court Transcript — file page 15, lines 3-21 — Transcript, file page 15, lines 3-21
- Official Supreme Court Transcript — file page 25, lines 9-25 — Transcript, file page 25, lines 9-25
- Official Supreme Court Transcript — file page 3, lines 19-43 — Transcript, file page 3, lines 19-43
How the case got here
The Supreme Court heard oral argument in this case on April 25, 2011.
Official sources for this section
- Official Supreme Court Transcript — file page 3, lines 7-17 — Transcript, file page 3, lines 7-17
What each side wants
the side that brought the case wants the court to certify the class. It argues reliance is presumed for all members.
the opposing side wants the court to deny certification. It argues individual reliance issues predominate.
Official sources for this section
- Official Supreme Court Transcript — file page 15, lines 3-21 — Transcript, file page 15, lines 3-21
- Official Supreme Court Transcript — file page 25, lines 9-25 — Transcript, file page 25, lines 9-25
- Official Supreme Court Transcript — file page 3, lines 19-43 — Transcript, file page 3, lines 19-43
What each side says
the side that brought the case argues the Basic presumption applies at certification. It claims loss causation belongs at trial.
the opposing side argues individual reliance issues predominate. It claims price impact must be resolved first.
Official sources for this section
- Official Supreme Court Transcript — file page 15, lines 3-21 — Transcript, file page 15, lines 3-21
- Official Supreme Court Transcript — file page 25, lines 9-25 — Transcript, file page 25, lines 9-25
- Official Supreme Court Transcript — file page 3, lines 19-43 — Transcript, file page 3, lines 19-43
What the justices asked
Justice Alito asked if the Basic presumption can be rebutted at certification.
Justice Kagan asked if materiality can be rebutted at certification. She also asked why price impact differs from other disputes.
Official sources for this section
- Official Supreme Court Transcript — file page 3, lines 45-47 — Transcript, file page 3, lines 45-47
- Official Supreme Court Transcript — file page 3, lines 51-5 — Transcript, file page 3, lines 51-5
- Official Supreme Court Transcript — file page 4, lines 11-17 — Transcript, file page 4, lines 11-17
- Official Supreme Court Transcript — file page 4, lines 37-39 — Transcript, file page 4, lines 37-39
- Official Supreme Court Transcript — file page 4, lines 49-7 — Transcript, file page 4, lines 49-7
- Official Supreme Court Transcript — file page 5, lines 27-31 — Transcript, file page 5, lines 27-31
- Official Supreme Court Transcript — file page 5, lines 35-39 — Transcript, file page 5, lines 35-39
- Official Supreme Court Transcript — file page 6, lines 15-17 — Transcript, file page 6, lines 15-17
- Official Supreme Court Transcript — file page 6, lines 21-29 — Transcript, file page 6, lines 21-29
- Official Supreme Court Transcript — file page 6, lines 3-7 — Transcript, file page 6, lines 3-7
- Official Supreme Court Transcript — file page 6, lines 35-37 — Transcript, file page 6, lines 35-37
- Official Supreme Court Transcript — file page 7, lines 7-23 — Transcript, file page 7, lines 7-23
Why it matters
This dispute defines the scope of securities class actions. It determines whether courts resolve reliance issues early. It affects the cost and speed of investor litigation.
Official sources for this section
- Official Supreme Court Transcript — file page 15, lines 3-21 — Transcript, file page 15, lines 3-21
- Official Supreme Court Transcript — file page 25, lines 9-25 — Transcript, file page 25, lines 9-25
- Official Supreme Court Transcript — file page 3, lines 19-43 — Transcript, file page 3, lines 19-43
What happens next
This article currently covers the argument record. Use the official docket link for later case activity.
Official sources for this section
- Official Supreme Court Transcript — file page 3, lines 45-47 — Transcript, file page 3, lines 45-47
- Official Supreme Court Transcript — file page 3, lines 51-5 — Transcript, file page 3, lines 51-5
- Official Supreme Court Transcript — file page 3, lines 7-17 — Transcript, file page 3, lines 7-17
- Official Supreme Court Transcript — file page 4, lines 11-17 — Transcript, file page 4, lines 11-17
- Official Supreme Court Transcript — file page 4, lines 37-39 — Transcript, file page 4, lines 37-39
- Official Supreme Court Transcript — file page 4, lines 49-7 — Transcript, file page 4, lines 49-7
- Official Supreme Court Transcript — file page 5, lines 27-31 — Transcript, file page 5, lines 27-31
- Official Supreme Court Transcript — file page 5, lines 35-39 — Transcript, file page 5, lines 35-39
- Official Supreme Court Transcript — file page 6, lines 15-17 — Transcript, file page 6, lines 15-17
- Official Supreme Court Transcript — file page 6, lines 21-29 — Transcript, file page 6, lines 21-29
- Official Supreme Court Transcript — file page 6, lines 3-7 — Transcript, file page 6, lines 3-7
- Official Supreme Court Transcript — file page 6, lines 35-37 — Transcript, file page 6, lines 35-37
- Official Supreme Court Transcript — file page 7, lines 7-23 — Transcript, file page 7, lines 7-23
Official Court provenance
Official docket and case history · Official Supreme Court oral-argument detail page
Title and summary sources
- Official Supreme Court Transcript — file page 15, lines 3-21 — Transcript, file page 15, lines 3-21
- Official Supreme Court Transcript — file page 25, lines 9-25 — Transcript, file page 25, lines 9-25
- Official Supreme Court Transcript — file page 3, lines 19-43 — Transcript, file page 3, lines 19-43
- Official Supreme Court Transcript — file page 15, lines 3-21 — Transcript, file page 15, lines 3-21
- Official Supreme Court Transcript — file page 25, lines 9-25 — Transcript, file page 25, lines 9-25
- Official Supreme Court Transcript — file page 3, lines 19-43 — Transcript, file page 3, lines 19-43
Revision history
- Revision 1 · Official Transcript ·
Correction: Rewritten to the concise citizen-facing editorial standard.
- Revision 2 · Official Transcript ·
Correction: Migrated to the dated official Court activity contract without model use.