The Ninth Circuit today upheld an order that granted class status to a federal securities fraud case against Amgen. Connecticut Retirement Plans and Trust Funds v. Amgen Inc., No. 09-56965 (9th Cir. Oct. 8, 2011).
The panel gave the back of its hand to Amgen's jutting chin of a point — that the class couldn't prove the materiality element of a claim under Rule 10b-5. Their honors ruled that simply pleading (a la Twombly) a plausible basis for the materiality of Amgen's false statements and omissions suffices at the class cert. stage. Proof of materiality need not come until later (at summary judgment and trial).
Blawgletter finds the panel's views quite sound. We hope to see more courts approach the question of which elements class plaintiffs must present proof of under Rule 23 with a like clearness.