It has been over fifteen years since the U.S. Supreme Court’s decision in Dura Pharmaceuticals v. Broudo, where the Court held that plaintiffs in securities fraud cases must plead and prove loss causation. In the interim, the lower courts have gone in a number of different directions on crucial loss causation questions
The author of The 10b-5 Daily (Lyle Roberts) has written an article for Law360 urging the Court to grant cert in the In re BofI Securities Litigation case. In that case, the U.S. Court of Appeals for the Ninth Circuit created a clear circuit split on the issue of whether a third-party judicial complaint, standing alone, can be a “corrective disclosure” for purposes of loss causation. Here is a link to the article (may require subscription).