October Term 2012 · Docket 11-1085
Can a judge decide materiality before certifying a securities class action?
Amgen argues that materiality is an individual issue. Plaintiffs claim it is a common question for the whole class.
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
Waxman stated that the core of a 10b-5 claim is individual reliance.
Sherry argued that Rule 23 focuses on whether common issues predominate.
Frederick contended that certification determines if the case generates common answers.
Read the official transcript for this argument · Official argument details
Sources used for this argument breakdown
- Official Supreme Court Transcript — file page 23, lines 27-27 — Transcript, file page 23, lines 27-27
- Official Supreme Court Transcript — file page 23, lines 29-35 — Transcript, file page 23, lines 29-35
- Official Supreme Court Transcript — file page 3, lines 19-1 — Transcript, file page 3, lines 19-1
- Official Supreme Court Transcript — file page 3, lines 7-17 — Transcript, file page 3, lines 7-17
- Official Supreme Court Transcript — file page 38, lines 45-17 — Transcript, file page 38, lines 45-17
- Official Supreme Court Transcript — file page 4, lines 15-17 — Transcript, file page 4, lines 15-17
- Official Supreme Court Transcript — file page 4, lines 3-9 — Transcript, file page 4, lines 3-9
- Official Supreme Court Transcript — file page 4, lines 39-41 — Transcript, file page 4, lines 39-41
- Official Supreme Court Transcript — file page 5, lines 19-23 — Transcript, file page 5, lines 19-23
- Official Supreme Court Transcript — file page 5, lines 9-15 — Transcript, file page 5, lines 9-15
- Official Supreme Court Transcript — file page 6, lines 21-33 — Transcript, file page 6, lines 21-33
- Official Supreme Court Transcript — file page 6, lines 41-49 — Transcript, file page 6, lines 41-49
- Official Supreme Court Transcript — file page 7, lines 13-21 — Transcript, file page 7, lines 13-21
- Official Supreme Court Transcript — file page 8, lines 23-37 — Transcript, file page 8, lines 23-37
- Official Supreme Court Transcript — file page 9, lines 15-23 — Transcript, file page 9, lines 15-23
- Official Supreme Court Transcript — file page 9, lines 35-37 — Transcript, file page 9, lines 35-37
- Official Supreme Court Transcript — file page 9, lines 41-43 — Transcript, file page 9, lines 41-43
A citizen's guide to the whole case
What this case is about
The case tests whether a judge can resolve materiality at the class certification stage. This step happens before a full trial on the merits.
Official sources for this section
- Official Supreme Court Transcript — file page 23, lines 27-27 — Transcript, file page 23, lines 27-27
- Official Supreme Court Transcript — file page 23, lines 29-35 — Transcript, file page 23, lines 29-35
- Official Supreme Court Transcript — file page 3, lines 19-1 — Transcript, file page 3, lines 19-1
- Official Supreme Court Transcript — file page 38, lines 45-17 — Transcript, file page 38, lines 45-17
How the case got here
The Supreme Court heard oral argument in this case on November 5, 2012.
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
Amgen wants the Court to bar judges from deciding materiality at certification.
Plaintiffs want the Court to allow judges to decide materiality at certification.
Official sources for this section
- Official Supreme Court Transcript — file page 23, lines 27-27 — Transcript, file page 23, lines 27-27
- Official Supreme Court Transcript — file page 23, lines 29-35 — Transcript, file page 23, lines 29-35
- Official Supreme Court Transcript — file page 3, lines 19-1 — Transcript, file page 3, lines 19-1
- Official Supreme Court Transcript — file page 38, lines 45-17 — Transcript, file page 38, lines 45-17
What each side says
Amgen argues that materiality depends on each investor's unique reliance.
Plaintiffs argue that materiality is a common question for all class members.
Official sources for this section
- Official Supreme Court Transcript — file page 23, lines 27-27 — Transcript, file page 23, lines 27-27
- Official Supreme Court Transcript — file page 23, lines 29-35 — Transcript, file page 23, lines 29-35
- Official Supreme Court Transcript — file page 3, lines 19-1 — Transcript, file page 3, lines 19-1
- Official Supreme Court Transcript — file page 38, lines 45-17 — Transcript, file page 38, lines 45-17
What the justices asked
Justice Kagan asked if a judge can dismiss a suit for immateriality at certification.
Justice Kagan asked if a judge can keep an individual case after ruling a statement immaterial.
Official sources for this section
- Official Supreme Court Transcript — file page 4, lines 15-17 — Transcript, file page 4, lines 15-17
- Official Supreme Court Transcript — file page 4, lines 3-9 — Transcript, file page 4, lines 3-9
- Official Supreme Court Transcript — file page 4, lines 39-41 — Transcript, file page 4, lines 39-41
- Official Supreme Court Transcript — file page 5, lines 19-23 — Transcript, file page 5, lines 19-23
- Official Supreme Court Transcript — file page 5, lines 9-15 — Transcript, file page 5, lines 9-15
- Official Supreme Court Transcript — file page 6, lines 21-33 — Transcript, file page 6, lines 21-33
- Official Supreme Court Transcript — file page 6, lines 41-49 — Transcript, file page 6, lines 41-49
- Official Supreme Court Transcript — file page 7, lines 13-21 — Transcript, file page 7, lines 13-21
- Official Supreme Court Transcript — file page 8, lines 23-37 — Transcript, file page 8, lines 23-37
- Official Supreme Court Transcript — file page 9, lines 15-23 — Transcript, file page 9, lines 15-23
- Official Supreme Court Transcript — file page 9, lines 35-37 — Transcript, file page 9, lines 35-37
- Official Supreme Court Transcript — file page 9, lines 41-43 — Transcript, file page 9, lines 41-43
Why it matters
This dispute shapes how securities fraud cases proceed. It determines whether individual investors must prove reliance separately. It affects the cost and speed of class action litigation.
Official sources for this section
- Official Supreme Court Transcript — file page 23, lines 27-27 — Transcript, file page 23, lines 27-27
- Official Supreme Court Transcript — file page 23, lines 29-35 — Transcript, file page 23, lines 29-35
- Official Supreme Court Transcript — file page 3, lines 19-1 — Transcript, file page 3, lines 19-1
- Official Supreme Court Transcript — file page 38, lines 45-17 — Transcript, file page 38, lines 45-17
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 7-17 — Transcript, file page 3, lines 7-17
- Official Supreme Court Transcript — file page 4, lines 15-17 — Transcript, file page 4, lines 15-17
- Official Supreme Court Transcript — file page 4, lines 3-9 — Transcript, file page 4, lines 3-9
- Official Supreme Court Transcript — file page 4, lines 39-41 — Transcript, file page 4, lines 39-41
- Official Supreme Court Transcript — file page 5, lines 19-23 — Transcript, file page 5, lines 19-23
- Official Supreme Court Transcript — file page 5, lines 9-15 — Transcript, file page 5, lines 9-15
- Official Supreme Court Transcript — file page 6, lines 21-33 — Transcript, file page 6, lines 21-33
- Official Supreme Court Transcript — file page 6, lines 41-49 — Transcript, file page 6, lines 41-49
- Official Supreme Court Transcript — file page 7, lines 13-21 — Transcript, file page 7, lines 13-21
- Official Supreme Court Transcript — file page 8, lines 23-37 — Transcript, file page 8, lines 23-37
- Official Supreme Court Transcript — file page 9, lines 15-23 — Transcript, file page 9, lines 15-23
- Official Supreme Court Transcript — file page 9, lines 35-37 — Transcript, file page 9, lines 35-37
- Official Supreme Court Transcript — file page 9, lines 41-43 — Transcript, file page 9, lines 41-43
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 23, lines 27-27 — Transcript, file page 23, lines 27-27
- Official Supreme Court Transcript — file page 23, lines 29-35 — Transcript, file page 23, lines 29-35
- Official Supreme Court Transcript — file page 3, lines 19-1 — Transcript, file page 3, lines 19-1
- Official Supreme Court Transcript — file page 38, lines 45-17 — Transcript, file page 38, lines 45-17
- Official Supreme Court Transcript — file page 23, lines 27-27 — Transcript, file page 23, lines 27-27
- Official Supreme Court Transcript — file page 23, lines 29-35 — Transcript, file page 23, lines 29-35
- Official Supreme Court Transcript — file page 3, lines 19-1 — Transcript, file page 3, lines 19-1
- Official Supreme Court Transcript — file page 38, lines 45-17 — Transcript, file page 38, lines 45-17
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.