Nick Even in Law360: Justice Roberts Holds The Key In Halliburton Arguments


When the U.S. Supreme Court on Wednesday hears Halliburton Co.’s bid to overturn the 25-year-old fraud-on-the-market theory, all eyes will be on Chief Justice John Roberts, who may hold the swing vote in determining the future of securities class actions.

The case, Halliburton Co. et al. v. Erica P. John Fund, challenges the high court’s 1988 Basic v. Levinson decision establishing the fraud-on-the-market theory presumption of reliance, which assumes that, in an efficient market, misrepresentations affect a company’s stock price by being carried through the market. Investors purchasing a security are presumed to have relied on that misstatement, a common refrain in securities class actions today...

In fact, no matter how the case is resolved, the case will likely be up to him, according to Nicholas Even, chairman of the securities litigation practice at Haynes and Boone, LLP.

“Watch for questions and comments by Justice Roberts at the argument,” Even said. “He was not part of the dissenting group in Amgen, and he did not join Justice Alito’s concurrence."

Excerpted from Law360, March 4, 2014. To view full article, click here (subscription required).

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