Acticon's Impact On Post-Corrective Disclosure Damages

Law360, New York (August 24, 2012, 12:46 PM EDT) -- On Aug. 1, 2012, the Second Circuit issued Acticon AG v. China North East Petroleum Holdings Limited, holding that economic loss, which is a necessary element to maintain a private damages action under Section 10(b) of the Exchange Act, is not conclusively negated at the pleading stage where the price of a stock rebounds after declines following an alleged corrective disclosure.

Importantly, the Court of Appeals clarified that damages incurred after a corrective disclosure may be properly reduced (or eliminated) where discovery establishes that a subsequent...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.