In Halliburton, SCOTUS Largely Preserves Status Quo

Law360, New York (June 23, 2014, 9:09 PM EDT) -- The U.S. Supreme Court today resisted the opportunity to put meaningful curbs on proliferating securities class actions, preserving most of the status quo in such cases.

The court’s much anticipated decision in Halliburton Co. v. Erica P. John Fund Inc. addressed the continued vitality of the “fraud on the market” theory and the conditions that trigger its application. The “fraud on the market” theory, originally adopted by the Supreme Court in 1988 in Basic v. Levinson, 495 U.S. 224 (1988), permits a plaintiff — and investor...
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