One More For The Road

Securities Litigation Watch notes that the recent decision in the K-Mart case (see this post) addresses loss causation and appears to follow the line of cases holding that merely alleging the stock was purchased at an artificially inflated price does not adequately plead a “causal nexus” between the misstatement and any economic harm. The 10b-5 Daily recently summarized the current split of appellate authority on this issue.