Jeff Scott and Julia Malkina, Co-Heads of S&C’s Securities Litigation Practice, spoke with New York Law Journal about issues they are keeping top of mind in 2026, including the price impact defense and other opportunities at the class certification stage.
They noted that the price impact defense has experienced a “rejuvenation” in the lower courts. “We’ve seen throughout the country, in the Ninth Circuit, in the Sixth Circuit, defendants pressing the price impact defense,” Julia said.
This legal strategy has gained traction following the Supreme Court’s 2021 ruling in Goldman Sachs Group Inc. v. Arkansas Teacher Retirement System, in which S&C represented Goldman Sachs. In the decision, the Supreme Court required lower courts to consider various types of evidence related to potential price impact at the class certification stage. “Courts have gotten the message from the Supreme Court that the lack of price impact defense is a real defense and it has to be taken seriously at the class certification stage,” said Jeff.
Read: “What to Watch in Securities Litigation in 2026”