Fenwick & West securities litigation partner Dean Kristy was quoted by the Daily Journal on the U.S. Supreme Court’s decision in Halliburton Co. et al. v. Erica P. John Fund, in which the court declined to overrule the fraud-on-the-market presumption of reliance, but confirmed that corporate defendants in putative securities class actions may rebut the reliance presumption, prior to the certification of any class, with evidence of lack of price impact.
"In the past, class certification in securities class actions was kind of uninteresting," Kristy told the Daily Journal. "It was not automatic, but the plaintiff generally had the better argument to make. This will give the defendant chances to get rid of cases sooner that shouldn't be certified."