Supreme Court Decision Alert - June 23, 2014

Tags: Supreme Court, securities class actions, fraud, Clean Air Act, regulation, Greenhouse-Gas Emissions

Today (June 23, 2014), the Supreme Court issued two decisions, described below, of interest to the business community.

• Securities Class Actions—Presumption of Reliance—Fraud on the Market
• Clean Air Act—Regulation of Greenhouse-Gas Emissions From Stationary Sources

Securities Class Actions—Presumption of Reliance—Fraud on the Market

Halliburton Co. v. Erica P. John Fund, Inc., No. 13-317 (described in the November 15, 2013, Docket Report)

To prevail in a securities-fraud case under Section 10(b) of the Securities Exchange Act of 1934, 15 U.S.C. § 78j(b), a plaintiff must establish—among other things—that the defendant made a false material representation in connection with the purchase or sale of securities, that the defendant acted either intentionally or recklessly, and that the plaintiff relied on the defendant's misrepresentation. At common