The Litigation Counsellor®
Securities Class Actions Alive, but on Life Support
On June 23, 2014, the U.S. Supreme Court issued a decision that dealt a near-fatal blow for plaintiffs in securities class action suits by making it harder for investors to collectively sue corporations for fraud. In an opinion written by Chief Justice Roberts, the court unanimously held that defendants at the preliminary class certification stage could refute the plaintiffs’ presumption of reliance on an efficient market if they can show that an alleged misrepresentation did not affect the company’s stock price.
ObamaCare Drastically Improves the Health of Qui Tam Suits Under the False Claims Act
One of the lesser-known sections of the Patient Protection and Affordable Care Act of 2010 (“Affordable Care Act”), colloquially known as ObamaCare, provides expansive amendments to the False Claims Act (“FCA”).1 While these amendments are not retroactive,2 they will most likely increase the amount of FCA-based claims in the future.