Partners Doug Greene and Zachary Taylor, along with Carla Caliendo (Vice President and Head of Public Company D&O Claims at Sompo), co-authored an article for Mealey’s titled “Goldman Sachs Group, Inc. v. Arkansas Teacher Retirement System: Defendants’ Second Line of Defense in Securities Class Actions.” Published August 5, 2026, the article discusses how the Supreme Court’s decision in Goldman gives defense counsel a means to defeat class certification in securities class actions by analyzing whether later disclosed adverse events (corrective disclosures) are sufficiently related to the earlier alleged misrepresentations. Under Goldman, if there is a mismatch between the nature, contents or subject matter of the alleged misrepresentations and the alleged corrective disclosures, plaintiffs may not be able to establish class-wide reliance and would fail to satisfy the predominance requirement for class certification. A successful Goldman challenge to class certification would strip the case of its class action status and virtually nullify damages in securities class actions.
