Halliburton Co. v. Erica P. John Fund, Inc.: SCOTUS considers shareholder class actions

by Walter Olson on March 6, 2014

Andrew Grossman reports on yesterday’s oral argument in Halliburton v. Erica P. John Fund, which “may be the biggest business case of the term. …Basic [Basic v. Levinson, 1988, in which the Court dispensed with the reliance requirement in favor of the "fraud on the market" theory] came at the tail-end of the Court’s decades-long experiment in policymaking by creating and defining the contours of civil actions. … The chief barrier to overturning Basic may not be its logic, its wisdom, or even its correctness as a matter of law, but instead stare decisis.” Earlier here, here, here, and here.

More: Kaye Scholer (possible “midway position” with impact on stock price considered at stage of class certification).

{ 1 comment }

1 Anonymous Attorney 03.06.14 at 2:01 pm

Shareholder class actions are nothing but high-class trip-and-fall suits: they’re opportunistic, grossly exaggerate harms, exact costs that far exceed any benefit conferred – assuming there is any benefit, and are pursued by the bottom-feeders of the legal profession. Limits on the enterprise would be welcome.

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