Forum
U.S. Court of Appeals for the Second Circuit
Case Status
Decided
Docket Number
03-7948
Oral Argument Date
August 12, 2004
Case Updates
Second Circuit addresses loss causation and pleading securities fraud
January 20, 2005
The Second Circuit affirmed that plaintiffs in a securities class action must show – at the pleadings stage --that the defendant's alleged fraud or misstatements actually caused the plaintiff's loss.
U.S. Chamber files amicus brief
June 04, 2004
NCLC urged the Second Circuit to affirm a district court decision holding that at the pleading stage, a plaintiff in a securities class action must show that the defendant's alleged fraud or misstatements actually caused the plaintiff's loss. A district court had dismissed the case in favor of Merrill Lynch’s research analysts on the grounds that the plaintiffs had not pleaded that the defendants' actions were the cause of their investment losses, or that their losses were not the result of the market wide decline in Internet stock values.