Supreme Court To Decide Whether Materiality Must Be Proven To Certify A Class

On June 11, 2012, the United States Supreme Court granted certiorari to resolve an issue that may impact whether companies can defeat securities fraud class actions early in the litigation. The Court will consider whether plaintiffs must prove the element of materiality at the class certification stage. There is currently a split among the Circuits on this issue.

In Connecticut Retirement Plans and Trust Funds v. Amgen Inc., plaintiff alleged that Amgen, Inc. ("Amgen") and several of its officers misrepresented the safety of two of the Company's products used to treat anemia, downplayed potential safety concerns, and otherwise failed to disclose details alleged to be material to the safety of the products, including a concern that one of the products exacerbated tumor growth in a small number of patients. Plaintiff further contended that these misrepresentations and omissions inflated Amgen's stock price.