January 7, 2011

Supreme Court To Address Class Certification Requirements

The U.S. Supreme Court continues to take an interest in securities litigation cases. Earlier today, the Court granted cert in the Erica P. John Fund, Inc. v. Halliburton Co. case.

In Halliburton, the Fifth Circuit declined to certify a class because the plaintiffs had failed to adequately demonstrate loss causation. At issue on appeal is whether the Fifth Circuit's requirement that plaintiffs establish loss causation at class certification by a preponderance of admissible evidence (but without the benefit of merits discovery) exceeds what is required by Federal Rule of Civil Procedure 23.

The Court asked for the government's views on the case. In a brief filed early last month, the government urged the Court to take the case and overturn the Fifth Circuit's decision. Among other things, the government noted that the Seventh Circuit has expressly rejected the Fifth Circuit's approach.

As always, SCOTUSblog has all of the relevant background materials.

Posted by Lyle Roberts at January 7, 2011 6:32 PM | TrackBack
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