Erica P. John Fund, Inc., Fka Archdiocese of Milwaukee Supporting Fund, Inc., Petitioner v. Halliburton Co., et al. (563 U.S. 804)
U.S. Supreme Court · decided June 6, 2011 · Supreme Court Database (Spaeth)
- Citation
- 563 U.S. 804 · 131 S. Ct. 2179
- Decided
- June 6, 2011
- Term
- October Term 2010
- Vote
- 9–0
- Majority author
- Justice Roberts
- Issue area
- Judicial Power
- Disposition
- Vacated and remanded
- Outcome
- Petitioning party won
- Ideological direction
- Liberal
Opinion excerpt
Chief Justice Roberts delivered the opinion of the Court. To prevail on the merits in a private securities fraud action, investors must demonstrate that the defendant’s deceptive conduct caused their claimed economic loss. This requirement is commonly referred to as “loss causation.” The question presented in this case is whether securities fraud plaintiffs must also prove loss causation in order to obtain class certification. We hold that they need not. I Petitioner Erica P. John Fund, Inc. (EPJ Fund), is the lead plaintiff in a putative securities fraud class action filed against Halliburton Co. and one of its executives (collectively Halliburton). The suit was brought on behalf of all investors who purchased Halliburton common stock between June 3,1999, and December 7, 2001. EPJ Fund alleges that Halliburton made various misrepresentations designed to inflate its stock price, in violation of § 10(b) of the Securities Exchange Act of 1934 and Securities and Exchange Commission Rule 10b-5. See 48 Stat. 891, 15 U.S.C. §78j(b); 17 CFR §240.10b-5 (2010). The complaint asserts that Halliburton deliberately made false statements about (1) the scope of its potential liability in asbestos litigation, (2) its expected revenue from certain construction contracts, and (3) the benefits of its merger with another company. EPJ Fund contends that Halliburton later made a number of…
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