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This Week In Securities Litigation (Week ending November 9, 2012)

The Supreme Court heard argument in a significant securities case this week. The question the High Court will resolve later this term is whether a securities law plaintiff relying on the fraud-on-the-market theory must, at the class certification stage, prove that the claimed misstatements were material...

Oregon Adopts Fraud-On-The-Market Theory

In Basic Inc. v. Levinson , 485 U.S. 224 (1988), the U.S. Supreme Court adopted the "fraud-on-the-market" theory of reliance, which presumes that investors who bought or sold a security did so in reliance on the integrity of the market price of that security: The fraud on the market theory...

The Supreme Court: Rewriting the Rules For Securities Class Actions?

Now that the United States Supreme Court has granted certiorari in Halliburton Co. v. Erica P. John Fund, Inc., No. 13-317 (S.Ct.) for the second time the High Court will consider two key issues. The first is whether the Court’s decision in Basic Inc. v. Levinson, 485 U.S. 224 (1988) [ an enhanced...