The fraud-on-the-market doctrine presumes that investors in an efficient market rely on the integrity of the price, so a plaintiff need not show they read the misstatement. Without it most securities class actions would be uncertifiable.
history and doctrine · updated 2026-09-08
See also
Efficient market hypothesis— The efficient market hypothesis holds that prices reflect available information. It matters legally because the fraud-on-the-marke…
Class action— A class action lets many similarly situated plaintiffs sue as a group. Securities class actions often follow an enforcement action…