The Second Circuit today vacated a decision not to certify a price-fixing case as a class action under Rule 23(b)(3).  The court held:

  • The fact that the putative class representatives bought their antitrust claims didn’t preclude them from adequately representing the class.
  • The district court erred in concluding that the fact-of-injury issue didn’t pose a question common to all class members.

Cordes & Co. Financial Services, Inc. v. A.G. Edwards & Sons, Inc., No. 06-2143 (2d Cir. Sept. 11, 2007).  The court remanded with instructions to reconsider certification under Rule 23(b)(3).

The case involves allegations that a bunch of initial public offering underwriters conspired to fix the fees they charged for underwriting mid-size IPOs (ones ranging between $20 million and $80 million).

Wall Street groaned.

Barry Barnett

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