Erica P. John Fund v. Halliburton

SIFMA submitted an Amicus “Friend of the Court” Brief.

Court:

U.S. Supreme Court

Amicus Brief Issue:

(1) Whether the Fifth Circuit correctly held, in direct conflict with the Second Circuit and district courts in seven other circuits and in conflict with the principles of Basic Inc. v. Levinson, 485 U.S. 224 (1988), that plaintiffs in securities fraud actions must satisfy not only the requirements set forth in Basic to trigger a rebuttable presumption of fraud on the market, but must also establish loss causation at class certification by a preponderance of admissible evidence without merits discovery.

(2) Whether the Fifth Circuit improperly considered the merits of the underlying litigation, in violation of both Eisen v. Carlise & Jacquelin, 417 U.S. 156 (1974), and Fed. R. Civ. P. 23, when it held that a plaintiff must establish loss causation to invoke the fraud-on-the-market presumption even though reliance and loss causation are separate and distinct elements of securities fraud actions and even though proof of loss causation is common to all class members.

Counsel of Record:

Paul, Weiss, Rifkind, Wharton & Garrison LLP

Charles E. Davidow

Brad S. Karp

Richard A. Rosen

Walter Rieman

John H. Longwell

Other Amici on SIFMA’s Brief: 

None