Apr. 2, 2003

'America West' Rejects Strict Standard On Stock Price Effect

Focus Column - Securities Law - By M. Chapman Findlay, David R. Garcia and G. Michael Phillips - Some 15 years ago, the U.S. Supreme Court considered the question of whether the element of reliance in fraud claims under Section 10b of the Securities and Exchange Act of 1934 would, in effect, require each member of a potential claimant class to offer proof of individualized reliance. See Basic Inc. v. Levinson , 485 U.S. 224 (1988).