The Class Certification of Exchange-Listed Options in Securities Class-Action Litigation

Chance, Don M.; Dombalagian, Onnig H.; Feinstein, Steven P.

doi:10.2139/ssrn.4731422

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The Class Certification of Exchange-Listed Options in Securities Class-Action Litigation

Tulane Public Law Research Paper No. 24-4

65 Pages Posted: 21 Feb 2024

See all articles by Don M. Chance

Don M. Chance

Louisiana State University, Baton Rouge - Department of Finance; Louisiana State University, Baton Rouge - E.J. Ourso College of Business Administration

Steven P. Feinstein

Crowninshield Financial Research

Date Written: February 1, 2024

Abstract

Class-action litigation for fraud on the market typically focuses on purchasers and sellers of stock. Yet those that traded in options on the shares can likewise be harmed. Drawing from experience in In re Apple, Inc. Securities Litigation (N.D. Cal. 2022), the authors describe the issues related to including options in a certified class in light of substantial opposition from defendants. This article explains how to overcome the obstacles to class certification of options.

Keywords: options, fraud on the market, securities litigation, class actions, Rule 10b-5, options market.

Suggested Citation: Suggested Citation

Chance, Don M. and Dombalagian, Onnig and Feinstein, Steven P., The Class Certification of Exchange-Listed Options in Securities Class-Action Litigation (February 1, 2024). Tulane Public Law Research Paper No. 24-4, Available at SSRN: https://ssrn.com/abstract=4731422 or http://dx.doi.org/10.2139/ssrn.4731422