# kaal:claim:1664809-017

**Claim.** 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.

**Type.** definitional  **Support.** evidenced

**Holds when.**

- US securities class actions under section 10(b) and Rule 10b-5

**Source quote.**

> 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, page 4

**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

**Verify.** sha256 of source PDF `2d5c8c30f969f8eb613bfa1fe6888a7cfa1a452e1027bcda0489618ceac62c20` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Painter%20and%20Kaal%20-%202010%20-%20Extraterritorial%20Application%20of%20US%20Securities%20Law%20%E2%80%93%20Will%20the%20US%20Become%20the%20Default%20Jurisdiction%20for.pdf

**Topics.** economics

**Keywords.** fraud-on-the-market, reliance, class-actions, comparative-law, rule-10b-5

**Related claims.**

- generalizes: https://wulfkaal.github.io/claims/2029983-018
- extended_by: https://wulfkaal.github.io/claims/2029983-013
- extended_by: https://wulfkaal.github.io/claims/2029983-017

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