How the Supreme Court’s Upcoming Halliburton Decision on the Fraud-on-the-Market Presumption May Impact Securities Litigation

In June, the United States Supreme Court will decide whether the fraud-on-the-market presumption should be overruled or modified. For the last quarter century, securities plaintiffs have relied on this presumption to successfully prosecute securities class actions that have resulted in substantial recoveries against publicly traded companies and the D&O insurance industry. In fact, class certification was denied based on the merits in less than 2% of securities actions filed between 2002 and 2010.