US: Supreme Court Provides New Avenue for Defendants to Challenge Securities Class Certification

On June 23, 2014, the United States Supreme Court issued a highly anticipated decision in Halliburton v. Erica P. John Fund, Inc. The Court reaffirmed the "fraud-on-the-market" doctrine, established in the 1988 Basic v. Levinson decision, that has been a cornerstone of modern securities class action litigation for the past 25 years. The Court, however, held that defendants may defeat the Basic presumption at the class certification stage through proof that any alleged misrepresentation did not impact the price of the relevant securities, a holding that will provide significant benefit to defendants in securities cases.  To read our briefing, click here.