Dura To Williams: Loss Causation Threshold

Law360, New York (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...
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