'It Was The Economy, Stupid' — Loss Causation And ARS

Law360, New York (March 18, 2010, 4:49 PM EDT) -- As is well-known among securities lawyers, one of the elements a plaintiff must show in bringing a securities fraud claim under Rule 10b-5 is “loss causation.”

In the typical 10b-5 case, the “loss causation” requirement means that the plaintiff must show that its injury (usually the decrease in market value of some security it owned) was proximately caused by the defendant’s fraudulent conduct, and not by some other cause.

This requirement permits a securities fraud defendant to point to a variety of other causes — such...
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