As the U.S. Supreme Court begins its October term, a securities litigator's fancy naturally turns to what cases the court might take next. A leading indicator is cert petitions where the Court has asked the government to provide its input. On Monday, the Court made this request in two separate cases: Halliburton (5th Cir.) and Omnicare (6th Cir.).
(1) The question presented in Halliburton is to what extent plaintiffs must demonstrate the existence of loss causation as part of the class certification process. The 10b-5 Daily's summary of the 5th Circuit's decision can be found here. SCOTUSblog has all of the cert petition materials.
(2) The question presented in Omnicare is whether the heightened pleading standard of FRCP 9(b) should be applied to '33 Act claims (i.e., strict liability/negligence claims based on misstatements in a prospectus or registration statement) that "sound in fraud." The 10b-5 Daily's summary of the Sixth Circuit's decision can be found here. SCOTUSblog has all of the cert petition materials.
Stay tuned for the governments' responses.
Disclosure: The author of The 10b-5 Daily's firm - Dewey & LeBoeuf - represents Omnicare in this case.Posted by Lyle Roberts at October 8, 2010 11:25 PM | TrackBack