Halliburton Co. and David Lesar v. Erica P. John Fund, Inc., FKA Archdiocese of Milwaukee Supporting Fund, Inc.
SUPREME COURT CASES RELATED BY THIS ISSUE
1. Whether this Court should overrule or substantially modify the holding of Basic Inc. v. Levinson, 485 U.S. 224 (1988), to the extent that it recognizes a presumption of classwide reliance derived from the fraud-on-themarket theory.
2. Whether, in a case where the plaintiff invokes the presumption of reliance to seek class certification, the defendant may rebut the presumption and prevent class certification by introducing evidence that the alleged misrepresentations did not distort the market price of its stock.
In its brief, the U.S. Chamber and other business groups urged the U.S. Supreme Court to overrule or modify the fraud-on-the-market theory endorsed by Basic Inc. v. Levinson, 485 U.S. 224 (1988). This theory allows plaintiffs to establish the reliance element in a securities fraud class action merely by showing that they traded stock around the time of the public misrepresentations. In other words, the Court created a shortcut to make it very easy to certify securities class action. This approach has led to confusion among the lower courts, enabled a wave of class action litigation, and "inflicted tremendous costs on public companies and their shareholders without producing corresponding benefits to investors."
Previously, the Chamber filed an amicus brief asking the U.S. Supreme Court to grant the certiorari petition.
This case has not yet been decided.
U.S. Supreme Court Briefing
(reverse chronological order)
- Argued 3/5/14
- Petitioners Reply Brief filed 2/21/14
- 12 Amicus Briefs filed 2/4/14 and 2/5/14 by
- Civil Procedure Scholars
- Council of Institutional Investors
- Current and Former Members of Congress
- Financial Economists
- Former SEC Chairmen William Donaldson and Arthur Levitt, Jr.
- Institutional Investors
- Scholars re Stare Decisis
- Securities Law Scholars
- United States
- Testifying Economists
- Respondent's brief filed 1/29/14
11 Amicus Briefs filed 1/6/14 by
- U.S. Chamber of Commerce, et al.
- American Institute of Certified Public Accountants
- Amgen, Inc.
- Committee on Capital Markets Regulation
- Former Members of Congress
- Former SEC Commissioners and Officials, and Law Professors
- Law Professors
- Securities Industry and Financial Markets Association
- Vivendi, S.A.
- Washington Legal Foundation
- Petitioner's Opening Brief filed 12/30/13
- Cert. granted 11/15/13
- Reply Brief filed 10/29/13
- 3 Amicus Briefs filed 10/11/13 by
- Brief in opposition filed 10/11/13
- Cert. petition filed 9/9/13
Fifth Circuit Decision filed 4/29/13