On September 26, 2008, Judge Nancy Gertner of the U.S. District Court for the District of Massachusetts granted lead plaintiff Bricklayers and Trowel Trades International Pension Fund’s Motion for Class Certification in In re Credit Suisse-AOL Securities Litigation.
In granting the motion, Judge Gertner stated that
The Court’s sole concern at class certification is whether plaintiff’s claims are properly amenable to class action treatment, and, in particular, whether common legal and factual questions predominate over individual ones. The question of whether Basic should apply in analyst cases was resolved at the motion to dismiss stage. Whether plaintiff’s evidence has raised triable issues of fact is a question for summary judgment. Defendants’ arguments regarding market impact, while certainly not insubstantial, do not address the purposes of Rule 23. To engage with them here would drag the Court into “an unwieldy trial on the merits.” PolyMedica, 432 F.3d at 17 (emphasis omitted).
As such, the Court holds that plaintiff need not show market impact at the class certification stage, as such a requirement does not address the underlying purposes of Rule 23. Thus, because plaintiff has shown that the market for AOL stock was efficient during the class period, Rule 23(b)(3)’s predominance requirement has been met.
Read the Court’s memorandum opinion here
