Levi & Korsinsky, LLP: Fraud-on-the-Market Doctrine Underpins Mereo BioPharma Securities Class Action
Know Your Rights: How Basic Inc. v. Levinson Enables Investor Recovery
NEW YORK, March 23, 2026 (GLOBE NEWSWIRE) -- Securities class actions rely on the fraud-on-the-market doctrine, established by the U.S. Supreme Court in Basic Inc. v. Levinson (1988), which presumes that investors rely on the integrity of the market price when making investment decisions. This legal framework enables shareholders of Mereo BioPharma Group plc (NASDAQ: MREO) who purchased during the Class Period to seek recovery without proving individual reliance on each alleged misstatement.
Submit your information now or contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com | (212) 363-7500.
The Efficient Market Hypothesis
The action alleges that MREO traded on an efficient market during the Class Period. Plaintiffs contend Mereo's ADS met requirements for listing on NASDAQ, the Company regularly communicated with investors through press releases and SEC filings, and securities analysts followed the stock. These factors allegedly caused material information—and misinformation—to be reflected in the trading price.
The Fraud-on-the-Market Doctrine
• Basic Inc. v. Levinson (1988) established the presumption of reliance in securities fraud cases
• Halliburton Co. v. Erica P. John Fund (2014) confirmed the doctrine's continued vitality
• Investors who purchase securities at artificially inflated prices are presumed to have relied on the market price
• This presumption eliminates the need to prove each investor read each misstatement
• The doctrine enables class-wide adjudication of securities fraud claims
Alleged Application to Mereo
The complaint contends that during the Class Period, Mereo's alleged misrepresentations about setrusumab's clinical trials were absorbed into the trading price of MREO ADS. When corrective information emerged—first in July 2025 and then in December 2025—the price allegedly declined as artificial inflation was removed, causing measurable investor harm.
Rule 23 Class Certification
Plaintiffs assert the class satisfies Federal Rule of Civil Procedure 23 requirements. The complaint alleges common questions of law and fact predominate, the class is sufficiently numerous, and a class action is superior to individual litigation for resolving investors' claims.
"Securities class actions allow investors to efficiently pursue claims that might otherwise be too costly to bring individually," said Joseph E. Levi, Esq. "The legal framework supports investor recovery when fraud is alleged."
ABOUT THE FIRM
Levi & Korsinsky, LLP represents investors in securities class actions nationwide, with particular expertise in complex fraud-on-the-market cases and Section 10(b) litigation. The firm has been ranked among ISS Securities Class Action Services' Top 50 for seven consecutive years. Lead plaintiff applications must be submitted by April 6, 2026.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
(212) 363-7500
jlevi@levikorsinsky.com
www.zlk.com
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