Tomorrow, March 5, the U.S. Supreme Court will tackle an unusual question regarding its precedent. Rather than determining how a prior case should be interpreted, the Court will address whether the case should be overruled altogether. In arguments for Halliburton Co. v. Erica P. John Fund, the Court will decide whether to overrule or substantially limit its holding in Basic Inc. v. Levinson. Both cases deal with the “fraud-on-the-market” theory of liability in SEC Rule 10b-5 class action suits.
Read more about the arguments for tomorrow here.