Banks, Drugmakers and Casinos Could Benefit From U.S. Supreme Court Class Action Ruling

If the U.S. Supreme Court rules against the theory that share prices reflect all publicly available information and that there is a fraud on the market when corporations misrepresent the truth publicly, major companies in the banking, pharmaceutical and casino industries would benefit, Reuters reports.

At least during oral argument, it seemed that the justices weren't in favor of completely overthrowing the fraud on the market theory: and were seeking "to find a middle ground that would require plaintiffs to show that the misrepresentation had a significant effect on the stock price but that would not overturn [the court's prior precedent] Basic [v. Levinson]. During oral arguments, some of the justices appeared to signal that the middle option would be their preference," Reuters further reports.