U.S. Supreme Court Decision Gives More Latitude to Defeat Securities Fraud Class Action Lawsuits Prior to Class Certification

In Halliburton Co. v. Erica P. John Fund, Inc., No. 13-317, __ S Ct. __, 2014 WL 2807181 (U.S. June 23, 2014), the United States Supreme Court refused to overturn the landmark decision Basic v. Levinson, but ruled that securities class action defendants may rebut the fraud-on-the-market presumption of investor reliance before the class certification stage by demonstrating lack of price impact.

California Supreme Court Okays Class Action Waivers and Overrules Gentry V. Superior Court, but Bans Waivers of Representative Actions Under the PAGA

California Supreme Court Okays Class Action Waivers and Overrules Gentry V. Superior Court, but Bans Waivers of Representative Actions Under the PAGA

Overruling Gentry v. Superior Court, 42 Cal. 4th 443 (2007) as preempted by the Federal Arbitration Act (“FAA”), the California Supreme Court upheld the validity of class action waivers in employment arbitration agreements.

Supreme Court Receives Petitioner’s Brief and Eight Supporting Briefs in Significant Class Action Involving “Unsettled Question” of Whether Tolling Applies to a Statute of Repose.

Supreme Court Receives Petitioner’s Brief and Eight Supporting Briefs in Significant Class Action Involving “Unsettled Question” of Whether Tolling Applies to a Statute of Repose.

In March, the Supreme Court granted certiorari to determine whether the filing of a putative class action serves, under the American Pipe rule, to satisfy the three-year time limitation in § 13 of the Securities Act with respect to the claims of putative class members.  Now, the Court is beginning to consider the merits.

Supreme Court Refuses to Overturn Fraud-On-the-Market Presumption, but Adjusts Presumption to Allow Evidence of Absence of “Price Impact” at Class Certification Stage

The securities class action industry was launched a quarter-century ago when the Supreme Court recognized the so-called “fraud-on-the-market” presumption of reliance in most putative securities class actions.