11th Circ. Snubs St. Joe Investors’ Loss Causation Theory

Law360, New York (February 26, 2013, 12:54 AM EST) -- The Eleventh Circuit on Monday handed a defeat to The St. Joe Co.’s investors, finding short-seller David Einhorn’s 2010 presentation on real estate’s woes at the time was not enough to prove the Jacksonville, Fla.-based real estate firm had caused their losses.

A three-judge panel ruled that a presentation by Einhorn that suggested St. Joe’s assets might be overvalued, and certain disclosures by St. Joe in 2011 about a U.S. Securities and Exchange investigation into its assets, was not enough to show loss causation, because they...
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