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O’Melveny Lawyers Author Law360 Article on Comcast v. Behrend’s Ramifications for Securities Class ActionsJanuary 28, 2014 O’Melveny & Myers partner Jeffrey Kilduff, counsel William Pao, and associates Courtney Gould and Michelle Leu recently authored an article on the US Supreme Court’s decision in Comcast v. Behrend and how it benefits corporate defendants in securities class actions. In the January 27, 2014, Law360 article, titled “Comcast Puts Securities Plaintiffs To An Earlier Test,” the authors argue that by holding that putative class actions must withstand a damages analysis before a class can be certified, the high court’s decision in Comcast has given corporate defendants “a valuable new tool for fending off abusive claims.”
The authors analyze several securities rulings made before and after the Comcast decision, and illustrate that the decision has particular value for defendants in securities class actions because it “allow[s] them to zero in earlier on what is often one of the greatest weakness in the plaintiffs’ case,” which they note is “the ability to isolate damages attributable to the alleged fraud from those caused by other factors.”
Kilduff is the managing partner of O’Melveny’s Washington, DC, office and chair of the Firm's Securities Litigation Practice. Pao and Gould are members of O’Melveny’s Securities Litigation Practice and reside in the Firm’s Los Angeles office. Leu is based in Los Angeles and is a member of the Firm’s Litigation Department.