In US securities class actions plaintiffs may proceed on the fraud on the market theory rather than proving actual reliance on misleading statements, an approach that has been rejected in most other countries.
Source quote, verbatim
theory' rather than requiring plaintiffs to prove actual reliance on
From
Richard W. Painter, Wulf A. Kaal, Extraterritorial Application of US Securities Law – Will the US Become the Default Jurisdiction for (2010), 4.1. European Jurisdictions and European Companies, p. 4 https://ssrn.com/abstract=1664809 · source PDF
Cite as
Richard W. Painter, Wulf A. Kaal, Extraterritorial Application of US Securities Law – Will the US Become the Default Jurisdiction for (2010). SSRN: https://ssrn.com/abstract=1664809
Holds when
US securities class actions under section 10(b) and Rule 10b-5
Classification
definitionalsupport: evidencedeconomics
Related claims
generalizeskaal:claim:2029983-018 Despite signs of movement in that direction, there is as yet no genuine European substitute for the U.S. secur...
extended_bykaal:claim:2029983-013 Because Section 929P did not restore private rights of action, the most powerful weapon in plaintiffs' arsenal...
extended_bykaal:claim:2029983-017 The requirement that each plaintiff show individual reliance, followed in most jurisdictions outside the Unite...
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