The Supreme Court held this morning in Halliburton Co. v. Erica P. John Fund, No. 13-317 (June 23, 2014), that the presumption of shareholder reliance in private securities-fraud class actions established by the Court in Basic Inc. v. Levinson, 485 U.S. 224 (1985), should not be overruled. It agreed, however, with the defendant Haliburton that the presumption of reliance may be rebutted with evidence that the alleged misrepresentation did not affect the stock price at the class-certification stage (as well as at the merits stage, as Basic had held).
For more on what was at stake in Halliburton, read our earlier post on the case.
