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SCOTUS Makes It Tougher To Sue Corps For Fraud

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AP Photo / Mary Altaffer

The justices said Monday that companies should have a chance at the early stages of a lawsuit to show that any alleged fraud was not responsible for a drop in the company's stock price.

The ruling is a partial victory for Halliburton Co., which is trying to block a class-action lawsuit claiming the energy services company inflated its stock price.

It is also a modest win for business groups that hoped to make it more difficult for plaintiffs to bring class-action cases. But the high court rejected Halliburton's request to overturn a quarter-century-old precedent that has made it easier for plaintiffs to negotiate billions of dollars in legal settlements.

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