Arkansas Teachers Retirement System v. Goldman Sachs Group, Inc.

Wesley, Circuit Judge:

Investors in a securities fraud class action traditionally have a problem proving that “questions of law or fact common to class members predominate over ... questions affecting only individual members” under Federal Rule of Civil Procedure 23(b)(3). The presumption established in Basic Inc. v. Levinson, 485 U.S. 224, 108 S.Ct. 978, 99 L.Ed.2d 194 (1988), addressed that problem by allowing courts to presume that the price of stock traded in an efficient market reflects all public, material information—including misrepresentations—and that investors rely on the integrity…