U.S. Chamber Urges Second Circuit to Overturn Securities Class Action Decision
The U.S. Chamber filed an amicus brief urging the Second Circuit to overturn a district court decision that flouts the “fraud-on-the-market” principles affirmed in Halliburton II and invites the filing of meritless and abusive securities class actions.
The brief in support of the petition for permission to appeal argues that the district court’s decision erroneously relieved plaintiffs of their burden of production to invoke the basic presumption as well as erroneously relieved plaintiffs of their burden of persuasion once the presumption was rebutted. The brief also explains the compelling need for immediate review due to the threat of abuse and unfair settlement pressures that can be associated with securities fraud class actions.
The U.S. Chamber also filed an amicus brief on the merits, in support of the defendants-appellants.
This case has not been decided on the merits yet.