The "Add" button adds a page to the "Build a Report" function to gather pages across our site and email them to a preferred email address. Access your pages by clicking on "Build a Report." The "Remove" button removes a page from the "Build a Report" function. Access your pages by clicking on "Build a Report."
The "Build a Report" function allows you to add links to selected pages and send them in an email to your preferred email address. Use the Add button to the left to add a page to your Report. Use the Remove button to remove a page. Click on the "Build a Report" link to open your collection of pages.
What’s Wrong With Securities Class Action Lawsuits? The Cost to Investors of Today’s Private Securities Class Action System Far Outweighs Any Benefits
5 February 2014
Mayer Brown White Paper
The Halliburton v. Erica P. John Fund case now before the Supreme Court involves the validity of the “fraud on the market” principle, which relieves a plaintiff of the obligation to prove reliance on a false statement—a legally required element of securities fraud—by creating a presumption of reliance based on economic theories regarding the assumed efficiency of securities markets.
Defenders of that judicially-created legal rule—perhaps recognizing that its legal and economic justifications have been undermined significantly by more recent scholarship and experience— contend that fraud-on-the-market should nevertheless be maintained, apparently even if the rule cannot actually be justified as a legitimate substitute for proving reliance, because eliminating it “would mean the demise of private securities actions and the deterrent and compensatory role they serve.”
But that contention rests on two fundamental assumptions: first, that these private lawsuits do in fact benefit investors by serving an important “deterrent and compensatory role”; and, second, that eliminating the fraud-on-the-market presumption would really mean “the demise of private securities actions.” As this paper will show, both assumptions are simply wrong.
Mayer Brown is a global legal services provider comprising legal practices that are separate entities (the “Mayer Brown Practices”). The Mayer Brown Practices are: Mayer Brown LLP and Mayer Brown Europe-Brussels LLP, both limited liability partnerships established in Illinois USA; Mayer Brown International LLP, a limited liability partnership incorporated in England and Wales (authorized and regulated by the Solicitors Regulation Authority and registered in England and Wales number OC 303359); Mayer Brown, a SELAS established in France; Mayer Brown Mexico, S.C., a sociedad civil formed under the laws of the State of Durango, Mexico; Mayer Brown JSM, a Hong Kong partnership and its associated legal practices in Asia; and Tauil & Chequer Advogados, a Brazilian law partnership with which Mayer Brown is associated. Mayer Brown Consulting (Singapore) Pte. Ltd and its subsidiary, which are affiliated with Mayer Brown, provide customs and trade advisory and consultancy services, not legal services.
“Mayer Brown” and the Mayer Brown logo are the trademarks of the Mayer Brown Practices in their respective jurisdictions.
You have no pages selected. Please select pages to email then resubmit.