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Unanimous U.S. Supreme Court Ruling Gives Green Light to Federal Securities Class Action


In a precedent-setting decision, the Supreme Court unanimously overturned a denial of class certification in a federal securities action being brought by BSF client Erica P. John Fund, Inc., and others against Halliburton.  The issue before the Court was whether a securities class action plaintiff must demonstrate loss causation at the class certification stage in order to invoke the fraud-on-the-market presumption of reliance. The case will now proceed back to the Fifth Circuit Court of Appeals.   

The following is a statement from BSF chairman David Boies:

We are, of course, pleased that the Supreme Court has unanimously reversed the ruling below which effectively prevented securities class action lawsuits. As the Supreme Court’s opinion makes clear, it is important to weed out weak or abusive securities class actions, but it is equally important that valid class actions be permitted to proceed. This is a victory for effective enforcement of public securities laws, and for individuals and institutions that are injured by securities fraud. It is also a tribute to my late daughter, Caryl Boies, who persevered with this case at a time when few gave it any chance of success.
Please follow the below links for media coverage of this case.

Am Law Litigation Daily, June 7, 2011
For Boies, Halliburton Win Is Testament to His Late Daughter

Bloomberg, June 6, 2011
Halliburton Loses as Supreme Court Backs Securities Suits

Dow Jones, June 6, 2011
US Supreme Court Revives Securities Class Action Against Halliburton

Reuters, June 6, 2011
Halliburton securities fraud lawsuit reinstated

National Law Journal, June 6, 2011
Investors win again at the high court — but don't call it a trend

Associated Press, June 6, 2011
Supreme Court says Halliburton lawsuit can go forward

Law360 [subscription], June 6, 2011
Loss Causation Not Necessary For Class Cert.: High Court

Related Lawyers: David Boies, Caryl L. Boies, Carl E. Goldfarb, , Robert B. Silver, Stuart H. Singer, Sigrid S. McCawley, Sashi C. Bach, , Frederick J. Lee

Related Practices: Securities Litigation, Class Actions