Securities Law

Fraud-on-the-Market Presumption of Reliance May Be Overruled

, The Legal Intelligencer

   | 0 Comments

On Nov. 15, the U.S. Supreme Court granted Halliburton Co.'s second petition for writ of certiorari in the Erica P. John Fund v. Halliburton, No. 13-317, securities litigation, this time to consider whether to "overrule or substantially modify the holding of Basic v. Levinson, 485 U.S. 224 (1988), to the extent it allows a presumption of classwide reliance under the fraud-on-the-market theory," and, if the court does not overrule Basic, to decide whether a 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."

What's being said

Comments are not moderated. To report offensive comments, click here.

Preparing comment abuse report for Article #1202630296663

Thank you!

This article's comments will be reviewed.