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Supreme Court raises bar for securities class-action cases
Supreme Court raises bar for securities class-action cases

The Supreme Court on Monday made it tougher for investors to join together to sue corporations for securities fraud, a decision that could curb the number of multimillion-dollar legal settlements companies pay out each year. But the unanimous ruling was only a modest step. It stopped short of tossing out a quarter-century-old legal theory that might have ended securities class-action lawsuits altogether. Only three of the nine justices said they would have gone that far. Writing for the court, Chief Justice John G. Roberts Jr. said that companies should have a chance in the early stages of a lawsuit to show that any alleged fraud was not responsible for a drop in the company's stock...

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