Not Predominant

Bozorgi v. Cassava Sciences, Inc. vacated a securities class certification order because the district court misapplied the Rule 23(b)(3) predominance standard.

Plaintiffs brought a securities class action under Sections 10(b) and 20(a) over statements about the unsuccessful Alzheimer’s drug simufilamm. Defendants sought review of class certification under Rule 23(f), arguing that meme-stock dynamics — yes, that is a thing — defeated predominance. The Fifth Circuit held that the district court did not appropriately analyze evidence about market inefficiency (price volatility, short-selling constraints, etc.) that were material to determining whether individual reliance had to be shown. No. 25-50855 (Oct. 16, 2026).