Arkansas Teachers Retirement System v. Goldman Sachs Group, Inc., No. 16-250 (2d Cir. 2018)Annotate this Case
Goldman Sachs appealed the district court's order certifying a class of plaintiffs who purchased shares of common stock in Goldman Sachs. Plaintiffs alleged that Goldman Sachs made material misstatements about its efforts to avoid conflicts of interest, and those misstatements caused the value of their shares to decline. In light of the Second Circuit's recent pronouncement that defendants bear the burden of persuasion to rebut the presumption in Basic Inc. v. Levinson, 485 U.S. 224 (1988), by a preponderance of the evidence, and for additional reasons, the court vacated plaintiffs' motion for class certification and remanded for further proceedings. The court explained that it was unclear whether the district court applied the correct standard in this case.