Securities Regulation
Advanced
Fraud-on-the-Market
A securities-litigation theory under which investors may rely on the market price as incorporating public misstatements in an efficient market.
Why It Matters
The doctrine links market efficiency to reliance, class certification, damages, and the economic logic of securities-fraud litigation.
Selected Literature
A short list of directly relevant archive entries.
1970
Introductory
1984
Advanced
1997
Advanced
1999
Advanced
The Scope of Private Securities Litigation: In Search of Liability Standards for Secondary Defendants
Jill E. Fisch
Columbia Law Review
Related Cases
2014
Securities Regulation
Halliburton Co. v. Erica P. John Fund, Inc.
573 U.S. 258 (2014)
Fraud-on-the-market reliance, class certification, and price-impact evidence in securities-fraud class actions.
1988
Securities Regulation
Basic Inc. v. Levinson
485 U.S. 224 (1988)
Materiality of merger negotiations and reliance in Rule 10b-5 class actions.
1943
Securities Regulation
SEC v. C.M. Joiner Leasing Corp.
320 U.S. 344 (1943)
Whether sales of oil-lease assignments promoted together with a promised test well were investment contracts subject to federal securities law.
1946
Securities Regulation
SEC v. W.J. Howey Co.
328 U.S. 293 (1946)
Definition of an investment contract under the federal securities laws.