Halliburton Co. v. Erica P. John Fund, Inc.
| Docket No. | Op. Below | Argument | Opinion | Vote | Author | Term |
|---|---|---|---|---|---|---|
| 13-317 | 5th Cir. | Mar 5, 2014 | Jun 23, 2014 | 9-0 | Roberts | OT 2013 |
Holding: Investors can recover damages in a private securities fraud action only if they prove that they relied on the defendant's misrepresentation in deciding to buy or sell a company's stock. In Basic Inc. v. Levinson, the Supreme Court held that investors could satisfy this reliance requirement by invoking a presumption that the price of stock traded in an efficient market reflects all public, material information-including material misstatements. Halliburton has failed to provide the "special justification" necessary to overrule that presumption. However, even if plaintiffs do not need to directly prove that the misrepresentation affected the stock price to invoke the Basic presumption, defendants can defeat the presumption at the class certification stage through evidence that the misrepresentation did not in fact affect the stock price.
Judgment: Vacated and remanded, 9-0, in an opinion by Chief Justice Roberts on June 23, 2014.
SCOTUSblog Coverage
- Opinion analysis: Son of Halliburton (Richard Booth, June 25, 2014)
- A view from the Court: Bar admissions, but no blockbusters (Mark Walsh, June 23, 2014)
- Academic highlight: Rethinking securities class actions (Amanda Frost, March 7, 2014)
- Argument recap: Justices not quite ready to jettison landmark securities decision, seeking middle ground (Ronald Mann, March 7, 2014)
- Argument preview: Justices to reconsider landmark securities class-action decision (Ronald Mann, March 4, 2014)
- Court grants two cases (UPDATED) (Lyle Denniston, November 15, 2013)
- Petition of the day (Mary Pat Dwyer, November 6, 2013)
| Date | Proceedings and Orders |
|---|---|
| 09/09/2013 | Petition for a writ of certiorari filed. (Response due October 11, 2013) |
| 10/11/2013 | Brief of respondent Erica P. John Fund, Inc., fka Archdiocese of Milwaukee Supporting Fund, Inc. in opposition filed. |
| 10/11/2013 | Brief amici curiae of Chamber of Commerce of the United States of America, et al. filed. |
| 10/11/2013 | Brief amici curiae of Former SEC Commissioners and Officials, and Law Professors filed. |
| 10/11/2013 | Brief amicus curiae of DRI - The Voice of the Defense Bar filed. |
| 10/29/2013 | Reply of petitioners Halliburton Co., et al. filed. |
| 10/30/2013 | DISTRIBUTED for Conference of November 15, 2013. |
| 11/15/2013 | Petition GRANTED. |
| 11/25/2013 | SET FOR ARGUMENT ON Wednesday, March 5, 2014 |
| 12/19/2013 | Record received from U.S.C.A. 5th Circuit. This record is electronic. |
| 12/23/2013 | The time to file the joint appendix is extended to and including January 13, 2014. |
| 12/30/2013 | Brief of petitioners Halliburton Co., et al. filed. |
| 12/30/2013 | Consent to the filing of amicus curiae briefs, In support of either party or of neither party, received from counsel for the respondent. |
| 12/31/2013 | Consent to the filing of amicus curiae briefs, In support of either party or of neither party, received from counsel for the petitioners. |
| 01/06/2014 | Brief amici curiae of Former Members of Congress, et al., in support of neither party filed. |
| 01/06/2014 | Brief amicus curiae of Vivendi, S.A. filed. |
| 01/06/2014 | Brief amicus curiae of Amgen Inc. filed. |
| 01/06/2014 | Brief of Washington Legal Foundation filed. |
| 01/06/2014 | Brief amici curiae of Law Professors filed. |
| 01/06/2014 | Brief amicus curiae of Committee on Capital Markets Regulation filed. |
| 01/06/2014 | Brief amicus curiae of Securities Industry and Financial Markets Association filed. |
| 01/06/2014 | Brief amicus curiae of American Institute of Certified Public Accountants filed. |
| 01/06/2014 | Brief amici curiae of Former SEC Commissioners and Officials, and Law Professors filed. |
| 01/06/2014 | Brief amicus curiae of DRI - The Voice of the Defense Bar filed. |
| 01/06/2014 | Brief amici curiae of Chamber of Commerce of the United States of America, et al. filed. |
| 01/13/2014 | Joint appendix filed. (2 Volumes) (Statement of costs filed) |
| 01/13/2014 | Supplemental Joint Appendix filed. |
| 01/17/2014 | CIRCULATED |
| 01/27/2014 | Record received from U.S.D.C. Northern District of Texas (1 Box). |
| 01/29/2014 | Brief of respondent Erica P. John Fund, Inc., fka Archdiocese of Milwaukee Supporting Fund, Inc. filed. (Distributed) |
| 02/04/2014 | Brief amici curiae of Council of Institutional Investors, et al. filed. (Distributed). |
| 02/05/2014 | Brief amicus curiae of the United States filed. (Distributed) |
| 02/05/2014 | Motion of the Solicitor General for leave to participate in oral argument as amicus curiae and for divided argument filed. |
| 02/05/2014 | Brief amici curiae of Legal Scholars filed. (Distributed) |
| 02/05/2014 | Brief amici curiae of Former SEC Chairmen William H. Donaldson and Arthur Levitt, Jr. filed. (Distributed) |
| 02/05/2014 | Brief amici curiae of Securities Law Scholars filed. (Distributed) |
| 02/05/2014 | Brief amici curiae of Testifying Economists filed. (Distributed) |
| 02/05/2014 | Brief amici curiae of Civil Procedure Scholars filed. (Distributed) |
| 02/05/2014 | Brief amici curiae of AARP, et al. filed. (Distributed) |
| 02/05/2014 | Brief amici curiae of Current and Former Members of Congress and Staff filed. (Distributed) |
| 02/05/2014 | Brief amici curiae of Financial Economists filed. (Distributed) |
| 02/05/2014 | Brief amici curiae of Institutional Investors filed. (Distributed) |
| 02/05/2014 | Brief amici curiae of States of Oregon, et al. filed. (Distributed) |
| 02/21/2014 | Motion of the Solicitor General for leave to participate in oral argument as amicus curiae and for divided argument GRANTED. |
| 02/21/2014 | Reply of petitioners Halliburton Co., et al. filed. (Distributed) |
| 03/05/2014 | Argued. For petitioners: Aaron M. Streett, Houston, Tex. For respondent: David Boies, Armonk, N. Y.; and Malcolm L. Stewart, Deputy Solicitor General, Department of Justice, Washington, D. C. (for United States, as amicus curiae.) |
| 06/23/2014 | Judgment VACATED and case REMANDED. Roberts, C. J., delivered the opinion of the Court, in which Kennedy, Ginsburg, Breyer, Sotomayor, and Kagan, JJ., joined. Ginsburg, J., filed a concurring opinion, in which Breyer and Sotomayor, JJ., joined. Thomas, J., filed an opinion concurring in the judgment, in which Scalia and Alito, JJ., joined. |
| 07/25/2014 | JUDGMENT ISSUED. |
Issue: (1) Whether this Court should overrule or substantially modify the holding of”Basic Inc. v. Levinson, to the extent that it recognizes a presumption of classwide reliance derived from the fraud-on-the-market theory; and (2) whether, in a case where the plaintiff invokes the presumption of reliance to seek class certification, the defendant may rebut the presumption and prevent class certification by introducing evidence that the alleged misrepresentations did not distort the market price of its stock.