Basic Inc. v. Levinson

Basic Inc. v. Levinson
Basic Inc. v. Levinson
	Supreme Court of the United States
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
	Chief Justice William Rehnquist Associate Justices William J. Brennan Jr. · Byron White; Thurgood Marshall · Harry Blackmun; John P. Stevens · Sandra Day O'Connor; Antonin Scalia · Anthony Kennedy
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.^[1]

Basic Inc. v. Levinson
Supreme Court of the United States
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
Chief Justice William Rehnquist Associate Justices William J. Brennan Jr. · Byron White Thurgood Marshall · Harry Blackmun John P. Stevens · Sandra Day O'Connor Antonin Scalia · Anthony Kennedy
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