United States Third Circuit

In plaintiff's putative securities fraud class action against an accounting firm that assisted American Business Financial Services, Inc. (American Business), a subprime mortgage originator based on section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5, claiming that defendant defrauded plaintiff and other investors by providing American Business clean audit opinions that were used to register the notes at issue with the Securities and Exchange Commission (SEC), district court's denial of class certification is affirmed as the fraud-created-the-market theory lacks a basis in common sense, probability, or any of the other reasons commonly provided for the creation of a presumption, and as such, the court declines to recognize a presumption of reliance based on the theory.

Appellate Information

• Argued 06/23/2010
• Decided 08/16/2010
• Published 08/16/2010

Judges

• SMITH

Court

• United States Third Circuit

Counsel

• For Appellant:
  
• Todd S. Collins, Jill M. Czeschin