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News
June 24, 2014

Media Reacts, Cites ILR Response, to Supreme Court’s Halliburton Decision

The Supreme Court “gave companies more leeway to fend off securities-fraud lawsuits before trial, but it declined to overrule legal precedent that has undergirded investor class actions for more than two decades,” reported the Wall Street Journal.

The Journal was just one of many news sources reporting on the Court’s Halliburton decision — and citing ILR President Lisa A. Rickard’s statement on the decision.

“The court today took a small first step in a long journey toward reducing the costs of securities class actions for investors,” said ILR President Lisa A. Rickard, in a statement picked up by the Wall Street Journal, as well as Bloomberg, the ABA Journal, USA Today, the Financial Post and others.

“In an opinion written by Chief Justice John Roberts,” writes Reuters’ Lawrence Hurley, “The Court stopped short of overturning a key 26-year-old precedent, Basic v. Levinson, which kickstarted the securities class action industry.”

In ILR’s statement, Rickard noted that “the court missed an important opportunity to correct the mistake that Basic has turned out to be for investors. Meritless securities class actions benefit only a few plaintiffs’ lawyers and ultimately cost investors billions.”

The Journal‘s editorial board also weighed in, writing, “It was a champagne day for trial lawyers at the Supreme Court Monday, as the Justices voted to maintain the status quo on securities class-action lawsuits that provide a windfall to plaintiffs attorneys. In a 9-0 decision, the Court opted not to revisit the case that created the legal theory for securities class certification and launched the securities lawsuit industry as we know it.”

The decision, notes the Wall Street Journal, “is a middle-of-the road outcome in a case that could have reset the board to better favor corporate defendants facing class-action lawsuits brought by investors.”

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