Forum

U.S. Supreme Court

Case Status

Decided

Docket Number

09-1403

Term

2010 Term

Oral Argument Date

April 25, 2011

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Questions Presented

Whether plaintiffs in putative securities fraud class actions should be required to establish loss causation in order to trigger the fraud-on-the-market presumption at the class certification stage.

Case Updates

Supreme Court holds that securities fraud plaintiffs need not prove loss causation to obtain class certification

June 06, 2011

U.S. Chamber files amicus brief

March 31, 2011

NCLC urged the Supreme Court to hold that the plaintiffs in a securities class action must prove that the defendants’ alleged misstatements caused the company’s stock value to drop. The plaintiffs allege that Halliburton made false statements about revenue from the company’s engineering and construction business, potential liability from asbestos litigation, and benefits from a company merger. In its brief, NCLC argued that if plaintiffs can’t prove loss causation, then either the alleged false statements were not material or the market was not efficient with respect to the statements. In either case, the fraud-on-the-market presumption required for such class actions would not apply.

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