Supreme Court May Hem In, But Not Overrule Securities Class-Action Theory

March 5, 2014

Christopher McDonald sheds light on the "price impact" discussion during the SCOTUS Halliburton arguments

"A critical point that seemed to get lost in the argument is that for most false statements, the 'price impact' only occurs with the corrective disclosure. To the extent 'price impact' is considered to be synonymous with 'price movement,' the only rule that would make sense is one that recognizes that the movement can occur when the truth is revealed."