We use cookies on this site to enable your digital experience. By continuing to use this site, you are agreeing to our cookie policy. close

Dura To Williams: Loss Causation Threshold

Law360 (March 17, 2009, 12:00 AM EDT) -- The Supreme Court’s 2005 decision in Dura Pharmaceuticals Inc. v. Broudo, 544 U.S. 336, made clear that a plaintiff alleging a securities fraud claim under Section 10(b), must prove that the defendant’s misrepresentations proximately caused the losses suffered by plaintiff, and that merely proving inflation of a stock’s price on the date of purchase is not sufficient to establish such loss causation. Id. at 345-46.

While Dura raised the loss causation threshold to require more than an inflationary stock price, it left open the issue of...
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.