S&C Co-Chair Bob Giuffra spoke with Litigation Daily on the impact that the Arkansas Teacher Retirement System v. Goldman Sachs Group decision has had on securities litigation and the use of price-impact defense. “Courts have started to apply the Goldman framework in the context of class certification” said Bob. “And so it’s becoming the new thing in securities litigation, at least in the context of event-driven litigation.”
Since the Second Circuit’s denial of class certification in Goldman, at least three other federal courts in securities class actions have followed suit. “Defendants will rely on the Goldman framework if they have a basis for doing it,” Bob noted. “It’s like anything else: if a defense is successful, other lawyers are going to try to apply it. These defenses tend to build on themselves.”
Read: “A Look Back at Goldman Sachs: How Price Impact Is Changing Securities Class Actions”