• Is the United States Supreme Court Poised to Overrule or Modify Basic Inc. v. Levinson?
  • December 2, 2013 | Author: Eric A. Boden
  • Law Firm: Schnader Harrison Segal & Lewis LLP - New York Office
  • On November 15, 2013, the U.S. Supreme Court granted a petition for writ of certiorari to Petitioner Halliburton Company (“Halliburton”) in the case entitled Halliburton Co. v. Erica P. John Fund, Inc., f/k/a Archdiocese of Milwaukee Supporting Fund, Inc. Halliburton appeals to the Supreme Court from a decision by the U.S. Court of Appeals for the Fifth Circuit affirming the certification of a class in a securities fraud class action and rejecting Halliburton’s attempt to introduce price impact evidence at the certification stage to rebut the presumption of reliance afforded by the fraud-on-the-market theory (see fn 1, infra). By granting Halliburton’s writ of certiorari, the Supreme Court has agreed for the second time in connection with this class action to revisit its 1988 landmark ruling in the case of Basic Inc. v. Levinson, 485 U.S. 224 (1988) (“Basic”), a decision which eased the obstacles to certification of putative classes in securities class actions.