Supreme Court Backs Securities Suits

The United States Supreme Court ruled for shareholders yesterday in the Erica P. John Fund v. Halliburton case.

The case centered around the standard that applies at the class certification stage.  The Supreme Court had previously said that shareholders must show they made investment decisions in reliance on a company’s alleged misstatements in order to get class action status.

Chief Justice John Roberts said that requirement didn’t mean that investors seeking class action status must show they lost money as a result of the alleged fraud:

“The fact that a subsequent loss may have been caused by factors other than the revelation of a misrepresentation has nothing to do with whether an investor relied on the misrepresentation in the first place,” Roberts wrote in his opinion for the court.

You can read the full article detailing this case here on the Financial Advisor website.

This entry was posted in D&O, PL Insurance and tagged , , by plushq. Bookmark the permalink.

About plushq

The Professional Liability Underwriting Society (PLUS) was founded in 1986 by industry professionals who recognized the need for a forum for individuals involved in the field of professional liability. The Society is a non-profit organization with membership open to persons interested in the promotion and development of the professional liability industry. Membership consists of over 6,500 individuals, representing over 1,000 companies active in the many fields of professional liability. PLUS currently receives the support of more than 200 companies through corporate membership. PLUS is recognized as the primary source of professional liability educational programs and seminars, assistance to its members to help serve clients, and information regarding professional liability. The Society is continually seeking new means to fulfill its mission statement and better serve its members.

Leave a Reply