The U.S. Supreme Court heard oral arguments in Halliburton Co v. Erica P. John Fund, Inc. last week, the case in which the Court has the opportunity to reverse or limit the 26-year old fraud-on-the-market doctrine adopted by the court in 1988. While the doctrine’s fate remains in question, the justices’ comments at the hearing indicate they are weighing options to make it more difficult for investors to sue. Class action litigation for stock fraud increased dramatically after the Court introduced... Read More

Following the U.S. Supreme Court’s decision to take up the “fraud-on-the-market” theory underpinning most securities fraud class actions, the Wall Street Journal has examined whether these class actions are likely to become.  The case could reshape the "balance of power” between companies and the lawyers who sue them based on alleged corporate wrongdoing or omissions that may have impacted stock prices. When investors sue a company under the “fraud on the market” theory, investors are allowed to join forces in a... Read More