By N. Peter Rasmussen, J.D.
The 2nd Circuit noted that while reviewing courts are “noticeably less deferential when the district court has denied class status than when it has certified a class,” there was no abuse of discretion in this case by the trial court. The defendants presented evidence that individual knowledge inquiries might be necessary. In addition, the court noted the “cumbersome” class definitions. The complaint sought recovery for all purchasers from the IPO forward, rather then choosing a narrower class definition focused on this more readily identifiable, homogeneous group, such as purchasers on specified dates. Under the proposed class definitions, the purchasers of each security who purchased at different times would have had available different levels of public information. Because public information could constitute circumstantial evidence of individual purchaser knowledge, the defendants would have stronger or weaker evidence of purchaser knowledge for each defendant based on purchase timing. New Jersey Carpenters Health Fund et al. v. RALI Series 2006-QO1 Trust et al.