Court says Halliburton lawsuit can go forward

By the Associated Press | June 6, 2011 | 10:58 AM EDT

WASHINGTON (AP) — The Supreme Court says Halliburton Co. shareholders can pursue a class-action lawsuit claiming the oil services company inflated its stock price.

The high court on Monday overturned a lower court ruling against the shareholders, who want to represent all investors who bought Halliburton stock between June 1999 and December 2001.

The lawsuit argues that Halliburton deliberately understated the company's liability in asbestos litigation, inflated how much money its construction and engineering units would bring in and overstated the benefits of a merger with Dresser Industries.

The 5th U.S. Circuit Court of Appeals in New Orleans refused to let the lawsuit go forward as a class-action but the high court overturned that decision.

The case is Erica P. John Fund Inc., v. Halliburton Co., 09-1403.