Business Associations Limerick of the Week: Basic Inc.

It is grading period, which leaves me with little time for posting.

Basic, Inc. v. Levinson does not have Limerickworthy facts, but it is too important a case to ignore, as it gives Supreme Court approval to the fraud-on-the-market theory, without which security fraud class actions would almost never make it past the certification stage.

Basic, Inc. v. Levinson

Is a plaintiff class free to rely
On word of a merger denied?
Yes, there’s a presumption
For those with the gumption
To fraud on the market decry.

[Jeremy Telman]