Dan Gold in Corporate Counsel: Corporate Defendants See Benefits in Halliburton Ruling


As the U.S. Supreme Court winds down its current term, it issued a ruling in one of the year’s big-ticket cases: Halliburton v. Erica P. John Fund. Also known as Halliburton II, the decision was released Monday and gave companies trying to protect themselves from securities fraud class actions something to smile about.

Were attorneys who defend corporate clients happy about the outcome? Yes. Were they surprised? Probably not. “I think the decision kind of came down as many people expected, and as I would’ve expected,” Dan Gold, a partner in Haynes and Boone, LLP’s class action and securities and shareholder litigation practices, told CorpCounsel.com.

The court ruled unanimously in favor of Halliburton, but chose a more middle-of-the-road approach to its opinion than it could have. The ruling boosts the ability of defendants to protect themselves from securities fraud class actions by allowing them to refute claims earlier in the litigation process. However, it did not get rid of plaintiffs’ ability to use a “fraud on the market” theory in their claims.

Excerpted from Corporate Counsel, June 24, 2014. To view full article, click here.


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