SIFMA Argues Against Weakening Class Certification Requirements

SIFMA asked the Second Circuit to vacate a District Court Order granting class certification to plaintiffs who alleged that defendants violated federal securities laws by making false and misleading statements regarding the sale of collateralized debt obligations. In re Goldman Sachs Grp., Inc. Sec. Litig., No. 10-cv-3461, 2015 WL 5613150*1 (S.D.N.Y. Sept. 24, 2015), appeal pending, No. 16-250 (2d Cir.).

In its amicus curiae brief, SIFMA cautioned that weakening class certification requirements subjects companies to "abusive class actions" and the potential for "blackmail settlements." SIFMA urged the Second Circuit to "preserve the careful limits" that the Supreme Court and Second Circuit placed on class certification motions in order to maintain the balance between enforcing the law in appropriate cases and weeding out non-meritorious claims.