Justices Should Clarify Securities Fraud Loss Causation

By Lyle Roberts (April 29, 2021, 6:02 PM EDT) -- It has been over 15 years since the U.S. Supreme Court addressed the pleading of loss causation in securities fraud cases.

In its 2005 decision in Dura Pharmaceuticals Inc. v. Broudo, however, the court merely held that plaintiffs must plead and prove a causal connection between any alleged misrepresentations and the subsequent decline in the company's stock price.[1] It did not address exactly how courts are supposed to assess if loss causation has been adequately plead.

At a time when many securities class actions are based on external events that have led to a stock price drop — rather than internal...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.


  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!

TRY LAW360 FREE FOR SEVEN DAYS

Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!