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Securities Fraud Case Held Up by Supreme Court
By John Curran
Government has not always done well when it comes to dealing with things that happened on the stock market. However, there is a very real question about how to define classes when it comes to major lawsuits. So it is that the Supreme Court is trying to decide whether or not a securities fraud case against a pharmaceutical manufacturer can go forward.
Stock fraud lawsuit lawyers argue that Amgen lied by omission when the company released reports that two of its drugs used in cancer treatments. However, internal studies showed that the drugs had an extreme adverse effects profile. That meant that Amgen did not properly inform investors of the risk, many of these plaintiffs claim. They also all consider themselves in the same boat: if they bought or held shares as a result of these claims, they all deserve damages from securities fraud.
Amgen is not thrilled by the development. They have been fighting for years in arguing that these people cannot bring a class action case against them. In fact, the Supreme Court considered hearing the claims beforehand, and finally took it up this year. There are two conflicting problems that face the court:
1) People buy and sell stocks at a constant tick as long as the markets are open. Is someone who bought a stock at $18 the same as one who bought at $20? How would the damages be apportioned?
2) More importantly, Amgen wants people to prove that the statements they gave actually impacted the stock price. They are arguing that the class should have to prove this before the case can proceed.
The Court seems to be of two minds after hearing the arguments. Some think that the second point would require deciding a portion of the case before securities fraud lawsuit lawyers before it even starts. Others note that class actions overwhelmingly lead to costly settlements. It’s unclear when there will be a final decision.
If you know of someone, maybe you, who has seen investments drop in price and think there was wrongdoing, get help. Visit our Securities Fraud, Stock Fraud Investment Class Action Lawsuit Investigation and fill out the short form. An experienced stock fraud class action lawsuit lawyer will contact you to review your financial records.
You may be able to pursue a case against a company to make up for your losses. Whether you are using them for income or saving for retirement, any little bit helps. Get started with one of our qualified stock fraud class action lawsuit lawyers now.
Updated November 7th, 2012
All securities fraud class action and lawsuit news updates are listed in the Stocks & Securities section of Top Class Actions
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