Find Court Cases > Erica P. John Fund, Inc. v. Halliburton Co.

Erica P. John Fund, Inc. v. Halliburton Co.

Case Date: 04/25/2011
Docket No: none

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.

Read the Briefs for this Case
  • Brief of National Association of Shareholder And Consumer Attorneys as Amicus Curiae In Support of Petitioner
  • Reply Brief for Petitioner
  • Brief of Law Professors as Amici Curiae In Support of Respondents
    • 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?

    Argument Erica P. John Fund, Inc. v. Halliburton Co. - Oral ArgumentFull Transcript Text  Download MP3Erica P. John Fund, Inc. v. Halliburton Co. - Opinion AnnouncementFull Transcript Text  Download MP3 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.