SCOTUS: Halliburton and Fraud on the Market

By |2014-03-06T09:44:03-06:00March 6, 2014|Current Events, D&O|0 Comments

The D&O insurance market is looking anxiously to Washington D.C. this week as the Supreme Court hears arguments in Halliburton v. Erica P. John Fund. One of the big concerns surrounding this case is the potential impact on the "fraud on the market" presumption for class action litigation. Reuters' Allison Frankel has a full write-up of oral arguments from Wednesday, March 5 here - we've highlighted a few key paragraphs below. Justice Anthony Kennedy was the first to raise the possibility of a compromise that would not entirely undermine Basic’s adoption of fraud-on-the-market theory, which assumes that market prices reflect all available public [...]