United States Supreme Court Holds That Loss Causation Is Not Required to Obtain Class Certification in a Securities Class Action

On Monday, June 6, 2011, the Supreme Court issued a unanimous decision in Erica P. John Fund, Inc. v. Halliburton Co., ruling that plaintiffs in a private securities fraud class action need not prove loss causation in order to obtain a certified class. That decision, authored by Chief Justice Roberts, abrogates the 5th Circuit decision Oscar Private Equity Investments v. Allegiance Telecom, Inc., 487 F.3d 261 (5th Cir. 2007) and its progeny. Read