On June 21, 2021, the Supreme Court vacates a Second Circuit decision in an important securities class action. The decision was a victory for WLF, which filed an amicus brief in the case. The Court clarified that, under its precedents, a defendant can rebut the presumption of class-wide reliance in a securities class action by showing, at the class-certification stage, that an alleged misrepresentation did not actually affect the stock’s market price. The Second Circuit violated that rule in this case. The Supreme Court rejected the appeals court’s rationale that such an inquiry would necessarily reach the merits of materiality. As WLF contended in its amicus brief, the Second Circuit’s view would undermine Congress’s intent to limit the proliferation of meritless securities class actions. WLF’s amicus brief was prepared with the pro bono assistance of Lyle Roberts and Daniel Sachs at Shearman & Sterling LLP.