Causation and reliance in securities class actions: Halliburton v EPJ Fund

A recent petition to the Supreme Court of the United States could fundamentally change securities class action litigation in the US, and encourage practitioners to reflect on the way securities class actions are argued in Australia.

The Supreme Court of the United States (Supreme Court) has recently heard a petition in Halliburton Co. v. Erica P. John Fund, Inc that has fundamentally challenged the economic theory that has shaped securities class actions in the US for the last 30 years. The Supreme Court's consideration of proving causation and reliance in class actions may provide crucial guidance on the application of statutory provisions on misleading and deceptive conduct to securities class actions in Australia.