Attorney Boies argued that the market efficiency presumption from Basic should be maintained because “the whole premise of the securities law is that when you make fraudulent misrepresentations, you make them public, it affects the market price.” Justice Alito, however, questioned whether markets are, in fact, efficient. In the clip below, Justice Alito questions Boies as to the immediacy of the impact on the market following a false representation. He asks, “Why should someone who purchased the stock . . . an hour or two after the disclosure [of fraud] be entitled to recover if in that particular market there is some lag time in incorporating the new information?” Boies responds that lag time is even less of a concern today than it was in 1988 when Basic was decided, given the advent of real-time information. In other words, his argument is that the market efficiency theory underlying Basic, far from being outdated, is, if anything, more relevant today.