The high court agreed on Friday to hear an appeal by Halliburton asking the high court to overturn a 1988 precedent that made it much easier for shareholders to band together to allege corporations have defrauded investors. The precedent, Basic v. Levinson, said that shareholders didn’t have to show that they had made investment decisions in reliance on a company misstatement. Instead, Basic enshrined the concept of “fraud on the market,” which assumes that misleading corporate assertions are reflected in a company’s stock price.
via Supreme Court Could Transform Shareholder Lawsuits With Halliburton Case – Businessweek
