Brattle Report Reveals Courts' Mixed Approach to Economic Evidence in 2025 Securities Class Actions
Event summary
- Brattle's 2026 report analyzed 18 federal court rulings on securities class action certification from 2025.
- Courts granted full class certification in 12 of 18 cases, with reliance challenges being the primary obstacle.
- Market efficiency challenges failed to impact certification outcomes, while price impact arguments saw limited success.
- Appellate courts (Fourth, Fifth, Sixth Circuits) are shaping how economic arguments are evaluated at certification.
- Report authored by Brattle Principals Andrew Roper, Mame Maloney, Brendan Rudolph, Ravi Sinha, and Associate Aidan Kutner.
The big picture
Brattle's analysis highlights the tension between defendants' attempts to rebut the fraud-on-the-market presumption and courts' varying approaches to economic evidence. The report underscores how appellate courts are increasingly shaping the landscape of securities litigation, with potential implications for how economic arguments are presented and evaluated at the certification stage. This trend reflects broader judicial scrutiny of class action certification standards and the growing role of economic evidence in shaping litigation outcomes.
What we're watching
- Appellate Influence
- How evolving appellate guidance will affect district courts' engagement with economic arguments at certification.
- Market Efficiency
- Whether defendants will adjust strategies after 2025's failed market efficiency challenges.
- Price Impact Arguments
- The extent to which courts will accept 'mismatch' arguments under Goldman ATRS in future cases.
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