High Court's Halliburton Ruling Sets Stage For Key Litigation Battles Ahead, Panel Says
Professor Joseph Grundfest spoke about the Supreme Court decision in Halliburton Co. v. Erica P. John Fund Inc. during a teleconference hosted by Stanford's Rock Center for Corporate Governance called "Halliburton:The Day After."
The U.S. Supreme Court's Halliburton decision has set the stage for securities litigation battles that will rage in the federal courts for the next several years, panelists at a legal conference said June 24.
The potential key litigation areas include how plaintiffs may discharge their burden of showing that their stocks traded in an efficient market, and the level of price impact defendants must show to defeat class certification, they said.
In the wake of the decision, “the only thing I'm sure about now is that we're going to litigate over these questions for another 25 years,” said Joseph Grundfest, a Stanford law professor and a former Securities and Exchange Commissioner. The lower courts must interpret this “far-from-precise opinion, and it's going to be trench warfare for several years.”