Loss Causation And 'Holder' Claims In Fraud Suits

Law360, New York (March 8, 2011, 2:32 PM EST) -- Following a familiar pattern, an inveterate cadre of class action specialists have filed a wave of putative shareholder class actions against troubled or failed financial institutions and their directors and officers. When brought under the federal securities laws, these cases typically allege misstatements and omissions about the condition and operations of the financial institution in question. In ruling on pretrial motions, some courts have considered the larger context of the financial meltdown.

Similar to court rulings after other periods of financial turmoil, these courts have dismissed...
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