Halliburton II, Materiality and Price Impact Rule in Securities Class Actions: 2019 Perspective
The securities class action landscape drastically shifted along with notable cases and court rulings concerning price impact. Earlier in 2018, the U.S. Court of Appeals for the Second Circuit released its opinion on Arkansas Teachers Retirement System v. Goldman Sachs Group, Inc. The opinion serves as a proper guidance in assessing a defendant’s rebuttal evidence in relation to Halliburton II, which allowed defendants to rebut fraud-on-the-market presumption during a class certification stage. The Second Circuit refuted the district court’s opinion that a “conclusive” proof of evidence is necessary as the “preponderance of the evidence” is enough to prove the absence of price impact.
Join a panel of distinguished professionals and thought leaders organized by The Knowledge Group as they provide an in-depth discussion of the evolving landscape of securities class action. They will discuss notable cases and court rulings and opinions concerning Halliburton II, materiality and price impact rule. Speakers will also address risk issues and offer best practices to successfully bring or defend against this type of lawsuit.
This LIVE Webcast will discuss the following:
- Securities Class Actions: Recent Litigation Trends
- The Price Impact Rule
- Notable Cases, Court Rulings and Opinions
- Risk Issues and Challenges
- Best Litigation Strategies
- Understanding the evolution of the price impact rule:
- Halliburton I
- Halliburton II
- Emerging trends following Halliburton II
- Front-end impact, back-end impact and the price maintenance theory
- Required quantum of proof and strategies to meet that burden
- All or nothing: accounting for confounding events
- Looking a little closer: the use of intraday studies
- Practical considerations: Avoiding the loss causation and materiality characterization traps
Analysis Group, Inc.
- Introduce event studies and describe how economists use them to evaluate whether the stock price changed in a statistically significant way on days associated with the alleged misrepresentation
- Describe the experts’ analyses in cases in which Defendants have successfully defeated class certification based on the “price impact rule” using some combination of the following:
- Freddie Mac
- Best Buy
- Discuss risks that Defendants might consider when evaluating if and how to invoke the price impact rule as part of their Class Cert defense.
Who Should Attend:
- Securities Lawyers
- Attorneys Defending Class Actions
- Securities Managers
- Litigation Officers
- Legal Consultants
- Corporate Executives
- General Counsel
- Business Lawyers
- Securities Markets
- Other interested Professionals
Mike McConnell defends officers, directors, and corporations in high-stakes securities and fiduciary duty litigation. The matters litigated include securities fraud class actions, SEC investigations and inquiries, derivative cases, proxy fraud litigation, and other matters that are often ancillary to shareholder litigation, including shareholder inspection actions, disputes under shareholder voting agreements, internal corporate investigations, and other special committee matters.
Mike's recent representations include defending comScore, Inc. and certain of its officers and directors in securities litigation; defending Flowers Foods and certain of its officers and directors in securities litigation; defending Rayonier Inc. in securities litigation; defending Gray Television in litigation seeking to enjoin it from operating an Augusta television station or offering it in the National Incentive Spectrum Auction; defending WL Ross & Co. and certain current and former officers and directors of International Textile Group (ITG) in class and derivative shareholder litigation arising from the merger of ITG and Safety Components International; defending Attachmate Corporation in connection with shareholder litigation filed in Delaware and Massachusetts challenging its acquisition of Novell Corporation; defending former officers and directors of various banks that failed in the wake of the credit crisis; defending The Southern Company in securities litigation arising from the spin-off of Mirant Corporation; and defending SunOpta Inc. in securities litigation.
Mike is a former member of the board of directors of the March of Dimes (Georgia Chapter; chairman, 2012), the Midtown Atlanta Rotary Club (president, 2013-2014), and the Leadership Atlanta Class of 2007.
Mike McConnell defends officers, directors, and corporations in high-stakes securities and fiduciary duty litigation. The matters litigated include securities fraud …
Mr. Holland has more than 15 years of experience applying economics and finance to problems arising in corporate and business litigation. He has assisted clients in all phases of the litigation process, including discovery, estimation of damages, case strategy, and settlement negotiations. He has also supported expert witnesses in their preparation of reports and testimony in securities- and valuation-related cases in a variety of industries, including mutual funds, private equity, municipal debt, and investment banking. Mr. Holland has conducted analyses and managed case teams in projects involving the assessment of market competition; the evaluation of costs in the financial services industry; the valuation of privately held companies; and the analysis of less-liquid structured products, including structured products used as collateral in secured lending arrangements and auction rate securities. His experience also includes valuing offers in mergers and acquisitions and evaluating how changes in market conditions can impact the valuation of deals.
Mr. Holland has more than 15 years of experience applying economics and finance to problems arising in corporate and business …
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Method of Presentation:
General knowledge of securities laws
NY Category of CLE Credit:
Areas of Professional Practice
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About Jones Day
Jones Day is a global law firm with more than 2,500 lawyers in 43 offices across five continents. The Firm is distinguished by: a singular tradition of client service; the mutual commitment to, and the seamless collaboration of, a true partnership; formidable legal talent across multiple disciplines and jurisdictions; and shared professional values that focus on client needs.
About Analysis Group, Inc.
Analysis Group is one of the largest international economics consulting firms, with more than 950 professionals across 14 offices in North America, Europe, and Asia. Since 1981, we have provided expertise in economics, finance, health care analytics, and strategy to top law firms, Fortune Global 500 companies, and government agencies worldwide. Our internal experts, together with our network of affiliated experts from academia, industry, and government, offer our clients exceptional breadth and depth of expertise.