Fraud on the Market After Amgen

James D. Cox

Duke University School of Law

December 11, 2013

Duke Journal of Constitutional Law & Public Policy, Vol. 9, No. 101, 2013

Contemporary applications of fraud on the market have been premised on the efficient market hypothesis, a theory that describes stock price formation in a perfect world rather than the issue central to the role of fraud on the market - how investors behave (i.e., rely). As a result, fraud on the market has been out of step with how investors reach investment decisions. This article examines the underlying tenets of recent Supreme Court decisions addressing causation in securities fraud cases to reason that fraud on the market can be reconfigured slightly so as to be consistent with both the role that presumptions have played in the Roberts Court as well as congressional intent underlying The Private Securities Litigation Reform Act. As developed here, reliance will persist as an element of the case but in a manner that accommodates a wide range of active and passive investment behavior such as indexing and style investing.

Number of Pages in PDF File: 30

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Date posted: December 13, 2013  

Suggested Citation

Cox, James D., Fraud on the Market After Amgen (December 11, 2013). Duke Journal of Constitutional Law & Public Policy, Vol. 9, No. 101, 2013. Available at SSRN: http://ssrn.com/abstract=2366450

Contact Information

James D. Cox (Contact Author)
Duke University School of Law ( email )
210 Science Drive
Box 90362
Durham, NC 27708
United States
919-613-7056 (Phone)
919-613-7231 (Fax)
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