Gilead Sciences, Inc., et al. v. St. Clare, et al.

Case Updates

NCLC urged the Supreme Court to grant a certiorari petition challenging the Ninth Circuit's relaxed loss causation pleading standard. According to the Ninth Circuit, plaintiff satisfies the loss causation standard by pleading nothing more than a stock price drop and a fanciful causation theory, manufactured after the fact. NCLC argued that a weak pleading standard for loss causation opens the door to frivolous and costly securities class actions. Meaningful pleading standards are more important than ever, given that the vast majority of publicly traded companies have experienced falling stock prices due to unfavorable macroeconomic conditions.