Defendants Unable to Establish Absence of Price Impact, Class Certification Granted | The D&O Diary

Defendants Unable to Establish Absence of Price Impact, Class Certification Granted | The D&O Diary:

by Kevin La Croix

 "In its long-awaited June 2014 decision in the Halliburton case, the U.S. Supreme Court declined to jettison the fraud on the market theory on which the presumption of reliance is based, but it did provide that defendants could attempt to rebut the presumption of reliance by showing that the alleged misrepresentation that is the basis of the plaintiffs securities claim did not impact the share price of the defendant company’s securities. Commentators have since debated what the opportunity for defendants to rebut the presumption of reliance by showing the absence of price impact will mean for securities cases.

 

While time will tell what the impact from this part of the Supreme Court’s holding in Halliburton will be, a September 29, 2014 order from the Southern District of Florida certifying a class in the Catalyst Pharmaceutical Partners securities class action lawsuit sheds some interesting light on the subject. The Court’s order can be found HERE."

click on the headline above to read La Croix's characteristically lucid commentary



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