Basic Inc. v. Levinson
| Basic Inc. v. Levinson | |
|---|---|
| Argued November 2, 1987 Decided March 7, 1988 | |
| Full case name | Basic Incorporated, et al., Petitioners v. Max L. Levinson et al. |
| Citations | 485 U.S. 224 (more) 108 S. Ct. 978; 99 L. Ed. 2d 194; 1988 U.S. LEXIS 1197; 56 U.S.L.W. 4232; Fed. Sec. L. Rep. (CCH) ¶ 93,645; 24 Fed. R. Evid. Serv. (Callaghan) 961; 10 Fed. R. Serv. 3d (Callaghan) 308 |
| Case history | |
| Prior | Class certified, granted summary judgment to defendants, Levinson v. Basic Inc., No. C79-1220, 1984 WL 1152 (N.D. Ohio Aug. 3, 1984), reversed, 786 F.2d 741 (6th Cir. 1986); cert. granted, 479 U.S. 1083 (1987). |
| Holding | |
| Plaintiffs are entitled to a rebuttable presumption of reliance in a 10b-5 case, based on a fraud-on-the-market theory. | |
| Court membership | |
| |
| Case opinions | |
| Majority | Blackmun, joined by Brennan, Marshall, Stevens; White, O'Connor (parts I, II, III) |
| Concur/dissent | White, joined by O'Connor |
| Rehnquist, Scalia, and Kennedy took no part in the consideration or decision of the case. | |
| Laws applied | |
| Securities Exchange Act of 1934, SEC Rule 10b-5 | |
Basic Inc. v. Levinson, 485 U.S. 224 (1988), was a case in which the Supreme Court of the United States articulated the "fraud-on-the-market theory" as giving rise to a rebuttable presumption of reliance in securities fraud cases.