ERICA P. JOHN FUND, INC. v. HALLIBURTON CO.

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Case Basics
Docket No. 
09-1403
Petitioner 
Erica P. John Fund, Inc., fka Archdiocese of Milwaukee Supporting Fund, Inc.
Respondent 
Halliburton Co., et al.
Decided By 
Advocates
(for the petitioner)
(Assistant to the Solicitor General, Department of Justice, for the petitioner)
Term:
Facts of the Case 

A group of Halliburton Co. shareholders, led by the Erica P. John Fund, filed a lawsuit that contends that from 1999 to 2001, the Houston-based company falsified earnings reports, played down estimated asbestos liability and overstated the benefits of a merger. The U.S. District Court for the Northern District of Texas denied the investors' motion for class certification in the case, holding that they couldn't sue as a group because they hadn't established that they lost money as a result of the alleged fraud. The U.S. Court of Appeals for the Fifth Circuit affirmed the lower court order.

Question 

In a securities fraud action, must plaintiffs prove that the alleged fraud caused a drop in stock prices in order to get class certification?

Conclusion 
Decision: 9 votes for Erica P. John Fund, 0 vote(s) against
Legal provision: §10(b) of the Securities Exchange Act of 1934

No. The Supreme Court vacated and remanded the lower court order in a unanimous opinion by Chief Justice John Roberts. "Securities fraud plaintiffs need not prove loss causation in order to obtain class certification," the Chief Justice wrote.

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ERICA P. JOHN FUND, INC. v. HALLIBURTON CO.. The Oyez Project at IIT Chicago-Kent College of Law. 23 October 2014. <http://www.oyez.org/cases/2010-2019/2010/2010_09_1403>.
ERICA P. JOHN FUND, INC. v. HALLIBURTON CO., The Oyez Project at IIT Chicago-Kent College of Law, http://www.oyez.org/cases/2010-2019/2010/2010_09_1403 (last visited October 23, 2014).
"ERICA P. JOHN FUND, INC. v. HALLIBURTON CO.," The Oyez Project at IIT Chicago-Kent College of Law, accessed October 23, 2014, http://www.oyez.org/cases/2010-2019/2010/2010_09_1403.