Case Study: In Re MIVA Inc. Securities Litigation

Law360, New York (September 24, 2009, 1:28 PM EDT) -- The Supreme Court’s decision in Dura Pharmaceuticals Inc. v. Broudo[1] requires plaintiffs in a securities fraud class action to prove that the claimed losses were caused by defendants’ alleged misrepresentation or omission.

Although not sufficient standing alone to establish loss causation, plaintiffs must show as a necessary prerequisite that they purchased the shares of stock at issue at prices that were artificially inflated due to the defendants’ alleged misstatements or omissions about the issuer or its future prospects.[2]

Litigants often resort to expert testimony as a...
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