In Halliburton, the Court will get the opportunity to reconsider the Basic presumption. The case comes to the Supreme Court by way of the Fifth Circuit. The Fifth Circuit affirmed the district court's grant of class certification based on the Basic theory and prohibited Halliburton from presenting market price impact evidence to rebut the presumption of reliance.
The petition for certiorari asked the Court to consider two questions: (1) whether the Court should "overrule or substantively modify" the Basic presumption and (2) whether a defendant may rebut the presumption by introducing evidence that the alleged misrepresentations did not distort the market price. In its order granting certiorari, the Court did not limit its review to either question. The Court will likely consider both questions.
See also:
Not so Basic anymore – USA Supreme Court to assess Basic's fraud-on-the-market presumption of relianceThe Basic presumption: securities class actions: Basic, Inc. v. Levinson, 485 U.S. 224 (1988)
Implications of the Halliburton case for securities lawsuits
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