EPJ Fund v. Halliburton: US Supreme Court Rules that Rule 10b-5 Plaintiffs Need Not Prove Loss Causation for Class Certification, But Leaves Other Potential Class Certification Defenses Untouched

June 13, 2011
The U.S. Supreme Court on June 6, 2011 reversed the Fifth Circuit and held that securities fraud plaintiffs do not have to prove loss causation in order to obtain class certification. This update examines the ruling in Erica P. John Fund v. Halliburton, Inc., including the important question the Supreme Court did not answer: can proof that alleged misstatements failed to affect a company’s stock price serve to rebut the presumption of reliance and defeat class certification?