Rethinking Basic. Lucian Bebchuk, Allen Ferrell, April 2014, Paper. “In the Halliburton case, the United States Supreme Court is expected to reconsider the Basic ruling that, twenty-five years ago, adopted the fraud-on-the-market theory, which has since facilitated securities class action litigation. In this paper we seek to contribute to this reconsideration. We provide a conceptual and economic framework for a reexamination of the Basic rule, taking into account and relating our analysis to the Justices’ questions at the Halliburton oral argument. We show that, in contrast to claims made by the parties…” Link verified June 19, 2014