SCOTUS Halliburton Ruling Could Backfire for Securities Defendants

Reuters – Alison Frankel's On the Case
June 23, 2014

Lawrence A. Sucharow says the Supreme Court ruling on Halliburton will actually improve plaintiffs' position after class certification

"It's true," said plaintiffs' lawyer Sucharow, "that if price impact battles take place at the class certification stage rather than in summary judgment briefing, plaintiffs' lawyers will have to spend more time and money on experts earlier than they're used to. But the reward for defeating price impact defenses at the class certification stage will be a better position in post-certification settlement talks: Defendants won't be able to argue that shareholders can't prove price impact."

"There will no longer be uncertainty that defendants might succeed in getting the case tossed on a summary judgment motion based on price impact," Sucharow said, "so shareholders will have better leverage in mediation or negotiations."

"Believe me, if this is the sacrifice we make for keeping Basic, we made a great trade," said Sucharow.