Securities Class Actions On Life Support In High Court Case

November 15, 2013

Ira A. Schochet explains the effects of the U.S. Supreme Court's potential reversal of "fraud-on-the-market theory" in Basic v. Levinson

On Friday, November 15, the U.S. Supreme Court agreed to reconsider a 25-year-old legal theory underpinning securities class actions. Labaton Sucharow LLP partner Ira Schochet said the Supreme Court should resist taking such a dramatic step. “This will likely hurt the primary advantage U.S. capital markets have over those of any other in the world — its level of transparency, accountability and honesty,” he said.