SCOTUS backs class certification in Amgen case

The U.S. Supreme Court ruled 6-3 on Wednesday that shareholders may sue Amgen Inc. (NASDAQ:AMGN) as a class in a securities fraud case alleging the biotech misled investors about the safety of its anemia drugs Aranesp darbepoetin alfa and Epogen epoetin alfa. SCOTUS upheld a ruling from the U.S. Court of Appeals for the Ninth Circuit in Amgen Inc. v. Connecticut Retirement Plans and Trust Funds that found plaintiffs need not prove that Amgen's alleged misrepresentations had a material effect on the stock price before a court can certify the group as a class.

In the majority opinion, Justice Ruth Bader Ginsburg said that while the plaintiffs "certainly must prove materiality to prevail on the merits such proof is not a prerequisite to class certification." She added that class certification only requires showing that "questions common to the class predominate" over questions affecting only individual members. ...