On August 20th, the Seventh Circuit affirmed a district court's finding that shares issued by Conseco qualify for the fraud-on-the-market presumption of reliance in a class action securities fraud lawsuit against Conseco's executives. In doing so, the Court discussed the economic basis for the theory's applicability to cases involving stock price decreases, and the inclusion of short sellers in a certified class. The Seventh Circuit also held that trial courts need not consider materiality or falsehood prior to class certification, disagreeing with the Fifth and First Circuits. Schleicher v. Wendt.