June 23, 2014 / 2:30 PM / 3 years ago

U.S. top court sets new limit on securities class actions

WASHINGTON, June 23 (Reuters) - The U.S. Supreme Court on Monday imposed new curbs on securities class action lawsuits filed by investors against publicly traded companies.

The court held on a 9-0 vote in a case brought by Halliburton Co that defendants can, at the preliminary class certification stage, rebut the plaintiffs’ presumption of reliance on an efficient market if they can show that the alleged misrepresentation did not affect the stock price. In an opinion written by Chief Justice John Roberts, the court stopped short of overturning a key 26-year-old precedent, Basic v. Levinson, which kickstarted the securities class action industry. (Reporting by Lawrence Hurley; Editing by Howard Goller)

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