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Markets that are efficient for purposes of establishing the fraud-on-the-market presumption are not rare.
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Contributed in 2008 & last edited in 2010 by David Gold
Law
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Commerce, labor, particular activities & industries
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Securities
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Liability & enforcement
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Fraud claims
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SEC Rule 10b-5
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Substance
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Liability
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Primary
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Types of claims (by types of wrongs)
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Misstatement/omission claims (10b-5(b))
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Elements
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Individual elements
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Reliance
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No liability without reliance
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Presumptions of reliance
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Fraud on the market
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Requires (1) public material misrepresentation by Δ, (2) efficient market, (3) trades during time of deception
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Efficiency
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Efficient markets not rare: Markets that are efficient...

That trades by an insider were made in accordance with a Rule 10b5-1 plan (an agreement allowing insiders to sell shares on a set schedule) does...
Red flags not acted upon by an auditor are insufficient to raise a strong inference of scienter under the Private Securities Litigation Reform Act...
A statement about the future is actionable under Rule 10b-5 only if it was false when stated.