Court Erred in Denying Certification of Gen Re Settlement Class, 2nd Cir. Rules

NEW YORK — A trial court erred in denying certification of a settlement class in a securities case against General Reinsurance Corp., a federal appellate court has ruled, explaining that the class was not required to show that the fraud-on-the-market presumption applied to their claims in order to satisfy the predominance requirement. In re American International Group Inc. Securities Litigation, No. 10-4401 (2nd Cir.).

In the case of a settlement class, the manageability concerns posed by numerous individual questions of reliance disappear, the 2nd Circuit U.S. Court of Appeals held in an Aug. 8 opinion.

In October 2004, a number …