United States Fifth Circuit
Oscar Private Equity Invs. v. Allegiance Telecom, Inc., 05-10791
Given the lethal force of certifying a class of purchasers of securities enabled by the fraud-on-the-market doctrine, loss causation must be established at the class certification stage by a preponderance of all admissible evidence. An order certifying a securities-fraud class action involving a now-bankrupt national telecommunications provider is vacated where plaintiffs failed to trigger the presumption of reliance provided by the fraud-on-the-market theory.
Appellate Information
- Decided 05/16/2007
- Published 05/17/2007
Judges
- PATRICK E. HIGGINBOTHAM, Circuit Judge:, Before JOLLY, HIGGINBOTHAM and DENNIS, Circuit Judges.
Court
- United States Fifth Circuit
Counsel
- For Appellees:
- Robin B. Howald (argued), Glancy, Binkow & Goldberg, New York City, Roger F. Claxton, Claxton & Hill, Dallas, TX, Lionel Z. Glancy, Kevin F. Ruf, Glancy, Binkow & Goldberg, Los Angeles, CA, for Plaintiff-Appellee and Appellees., Timothy R. McCormick, G. Luke Ashley (argued), William Lowell Banowsky, Michael Warren Stockham, Thompson & Knight, Dallas, TX, for Defendants-Appellants.