High court will not consider burden of persuasion when invoking fraud-on-the-market

By Rodney F. Tonkovic, J.D. The Supreme Court has denied certiorari for a petition asking it to consider questions posed by the invocation of the fraud-on-the-market presumption of reliance under Basic Inc. v. Levinson. The first question asked which party has the burden of persuasion when a defendant tries to rebut the presumption. The petition also asked what evidence must be put forth by a plaintiff seeking to rebut the presumption (Barclays PLC v. Waggoner, April 30, 2018). Dark pools. Petitioner Barclays PLC operates a "dark pool" trading system that it claimed protected customers from practices engaged in by high-frequency traders. A securities fraud suit was filed in 2014 alleging that contrary to its representations, Barclays not only allowed high-frequency traders in LX, but sought them out and gave them information that allowed them to take advantage of other traders. The district court granted class certification for certain purchasers of Barclays'…

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