Precedent is Upheld on Class Action Lawsuits that are Spurred by Stock Losses

Pensions & Investments
July 7, 2014

Lawrence A. Sucharow discusses the impact of the Supreme Court Halliburton case on institutional investors

Regarding the possible increase in scrutiny of corporate and market practices the Supreme Court’s decision in Halliburton v. Erica P. John Fund, Larry said, “It’s a tremendous victory for investors because this type of litigation—and the threat of it—helps in keeping the markets clean.”

“Pension funds are a critical piece of class actions,” he added. “We counsel clients (that) you have to look where your losses were, and you have to evaluate (if you have a case). You may have an obligation.”

“There's also a generalized goal that we want the markets to be clean or cleaner. We try to get corporate governance reforms in the settlement. Those are enhancements if you can get them,” he said.