On Dec. 11, 2020, the Supreme Court granted certiorari
in Arkansas Teacher Retirement System, et al. v. Goldman
Sachs Group, Inc.,1 to review a decision by
the Second Circuit Court of Appeals upholding certification of an
investor class alleging that Goldman violated securities laws by
concealing conflicts of interest. This long running case presents
important and recurring issues in securities class action
litigation as to (i) whether the presumption of classwide reliance
recognized in Basic v. Levinson2 can
be rebutted by pointing to the generic nature of alleged
misstatements, and (ii) the burden of proof in rebutting
the Basic presumption.
The underlying action dates back to 2011. Plaintiffs alleged
that Goldman's general public statements that it had extensive
procedures designed to identify and address conflicts of interest
and that it was dedicated to complying with the law were
misleading, in violation of Section 10(b) of the Securities
Exchange Act of 1934
