Justices send securities class action against Goldman Sachs back to lower court
on Jun 21, 2021 at 11:43 am
The Supreme Court on Monday sent a shareholder class-action lawsuit against Goldman Sachs back to a lower court for a closer look at whether alleged misstatements by the bank were too general to have affected its stock price.
In its opinion in Goldman Sachs Group v. Arkansas Teacher Retirement System, the court held that defendants in securities cases can rebut the presumption that class-based adjudication is appropriate by showing that the challenged statements were so generic that they would not have distorted the price of the security in question. Justice Amy Coney Barrett wrote the opinion of the court. Justices Sonia Sotomayor and Neil Gorsuch filed partial dissents, with Justices Clarence Thomas and Samuel Alito joining Gorsuch.
Check back soon for in-depth analysis of the opinion.
[Disclosure: Goldstein & Russell, P.C., whose attorneys contribute to SCOTUSblog in various capacities, is counsel for the Arkansas Teacher Retirement System in this case. The author of this article is not affiliated with the firm.]