John A. Quayle
blueoval57 at verizon.net
Sun Feb 16 18:04:21 MST 2014
At 01:05 PM 2/16/2014, Tom Matiska wrote:
>Halliburton production operations involved little asbestos. Most
>asbestos related liability was a previous sin they acquired through
>the purchase of Dresser.
Dresser Industries - the folks who made the Jeffrey diesel
locomotives for underground coal mine usage?!? When did they acquire
this company? Halliburton has a branch about 35 minutes from here -
down in Greene County, east of Waynesburg (PA), off of Route 21. I've
been past it while on my way to umpire high school baseball games. - jaq
>Halliburton did pay $5B into the asbestos trust fund. The other 59
>companies involved in that trust fund aren't mentioned in the
>article.... hmmm.... go figure... no politics here... Tom
>From: Paf Dvorak <notmyname at thatswaytoomuch.info>
>To: rushtalk at csdco.com
>Sent: Saturday, February 15, 2014 9:26 PM
>Subject: [Rushtalk] the-supreme-court-may-soon-take-away-this-important-right
>If the controversial oil-services company Halliburton has its way,
>then small investors may soon lose one of their most potent weapons
>against corporate fraud: the ability to file class-action lawsuits
>under the Securities Exchange Act of 1934.
>At the end of last year, the U.S. Supreme Court agreed to hear
>Halliburton's appeal in a class-action case brought by investors
>against it and former CEO David Lesar for "knowingly or severely
>recklessly misleading" the public more than a decade ago about the
>company's liability for asbestos claims.
>Indeed, it's no exaggeration to say that the very existence of
>securities fraud class actions hinges almost entirely on the outcome
>of this case.
>The facts of the case
>The facts involve statements made by Halliburton in 2001 about the
>extent of exposure to asbestos litigation assumed in its acquisition
>of Dresser Industries.
>In January of that year, the company reported that "prospective
>asbestos liabilities ... should have minimal adverse impact on the
>company going forward." In August, it claimed that "asbestos
>exposure concerns appear to be overblown." And in November, it
>stated that "open asbestos claims will be resolved without a
>material adverse effect on our financial position or the results of
>Yet less than a month after the last statement, Halliburton was hit
>with a $30 million asbestos verdict, causing investors to lose faith
>in the company's assurances and fear the worst. Shares in the oil
>services company proceeded to plummet, dropping by 42.7% on the day
>of the announcement.
>The current class-action lawsuit was filed on behalf of investors
>soon thereafter and has made its way through various courts ever since.
>A critical legal wrinkle
>The specific issue before the Supreme Court is a nuanced one.
>Halliburton isn't simply professing its innocence or asking the
>justices to hold that it didn't mislead investors. Instead, it's
>moving the court to bar plaintiffs from litigating the case as a
>class action as opposed to separate lawsuits.
>On the surface, this doesn't seem like a big deal. Who cares if
>investors have to sue Halliburton individually as opposed to as a
>class? What difference does it make to people who didn't own
>Halliburton stock when the alleged misrepresentations took place?
>The answer is that it makes a huge difference.
>This is because Halliburton is asking the court to overturn a legal
>doctrine known as the "fraud on the market" theory, which creates a
>rebuttable presumption that investors rely on statements of material
>fact made publicly by corporate executives. Without this
>presumption, securities fraud cases would be far too complicated to
>litigate as class actions, leaving individual investors to fend for
>themselves against deep-pocketed corporations.
>The implications of this would be considerable. Most importantly,
>for nearly three decades, the securities laws have been predicated
>on both public and private enforcement -- the former by the SEC and
>Justice Department and the latter by private class-action lawsuits.
>Without the latter, in turn, the market would lose a critical
>overseer and, one can only assume, be far more susceptible to deceit.
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