Below is the first part of an article by David G. Savage from It reads…

WASHINGTON — Halliburton Co. and other U.S. corporations urged the Supreme Court to reverse a 26-year-old ruling that triggered an avalanche of class-action lawsuits by investors in publicly traded companies.

But based on justices’ comments Wednesday, it appeared they would fall at least one vote short of a major victory.

Chief Justice John G. Roberts Jr. and Justice Anthony M. Kennedy explored the idea of a “midway” ruling that would make it slightly harder, but not impossible, to bring such suits.

They suggested the court could require a lawyer filing a suit for a group of investors to show evidence that the company’s misleading statements caused its stock price to inflate.

The Supreme Court opened the door for most of today’s class-action stock fraud suits in 1988 when it ruled that a class of plaintiffs need not show they were fooled by a company’s false statements.


Marc Primo Pulisci is a Los Angeles based attorney practicing with Initiative Legal Group. Marc Primo Pulisci has been practicing law for over 10 years. Find Marc on Marc Primo TwitterMarc Primo MantaMarc Primo FacebookMarc Primo SquarespaceMarc Primo Dot ComMarc Primo Pulisci Dot ComMarc Primo MyspaceMarc Primo Pulisci BlogMarc Primo WordPressMarc Primo Blog Marc Primo Quora Marc Primo Foursquare Marc Primo Manta Marc Primo Merchant Circle Marc Primo Yellow Book Marc Primo Google Plus Marc Primo Law360 Marc Primo Zoho Docs Marc Primo Blogspot