Top Five Securities Cases of 2014: No Halliburton II
Lane Powell Shareholder Doug Greene authored a January 2 Law360 article titled “Top Five Securities Cases Of 2014: No Halliburton II.” In the article, Greene discussed five securities cases that top his list of most influential developments in 2014. The cases foretell the types of securities and corporate-governance claims plaintiffs will bring in the future, how defendants will defend them and the exposure they present. He also discussed why Halliburton Co. v. Erica P. John Fund Inc. (aka “Halliburton II“) did not make his Top Five list.
2014 will be remembered as the year of the Super Bowl of securities litigation, Halliburton Co. v. Erica P. John Fund Inc., the case that finally gave the U.S. Supreme Court the opportunity to overrule the fraud-on-the-market presumption of reliance, established in 1988 in Basic v. Levinson. Yet, for all the pomp and circumstance surrounding the case, Halliburton II may well have the lowest impact-to-fanfare ratio of any Supreme Court securities decision, ever. Topping my Top Five list is a forthcoming Supreme Court decision in a different, less-heralded case — Omnicare Inc. v. Laborers District Council Construction Industry Pension Fund. Despite the lack of fanfare, Omnicare likely will have the greatest practical impact of any Supreme Court securities decision since the court’s 2007 decision in Tellabs Inc. v. Makor Issues & Rights Ltd.