To embed, copy and paste the code into your website or blog: On 21 June 2021, in a narrow ruling, the Supreme Court held that courts may consider the generic nature of an alleged misrepresentation as evidence of a lack of price impact where defendants seek to rebut the presumption of reliance—established under Basic Inc. v. Levinson 1—at the class certification stage. 2 A court must consider this evidence even though it may also bear on the materiality of a statement, an issue which is reserved for the merits phase of the action. The Supreme Court also clarified the burden that defendants must discharge in order to rebut the