Monica Loseman, and Jason Mendro are partners and Lissa Percopo is an associate at Gibson, Dunn & Crutcher LLP. This post is based on a Gibson Dunn publication by Ms. Loseman, Mr. Mendro, Ms. Percopo, and Christopher White. Related research from the Program on Corporate Governance includes Rethinking Basic by Lucian Bebchuk and Allen Ferrell (discussed on the Forum here).
On January 12, 2018, the Second Circuit issued its second substantive opinion applying Halliburton Co. v. Erica P. John Fund, Inc., 134 S. Ct. 2398 (2014) (“Halliburton II“), only the third issued by any federal circuit court since the Supreme Court’s landmark decision in June 2014. Ark. Teachers Ret. Sys. v. Goldman Sachs, — F.3d —, Case No. 16-250, 2018 WL 385215 (S.D.N.Y. Jan. 12, 2018). The Second Circuit vacated the district court’s order certifying a class and remanded for further proceedings to determine whether the defendants had presented sufficient evidence that the alleged misstatements did not impact Goldman Sachs’ stock price. The Second Circuit encouraged the district court to hold any evidentiary hearing or oral argument it finds appropriate to address this issue on remand.
