• Supreme Court Clarifies Plaintiff's Burden of Demonstrating Loss Causation in Securities Fraud Cases
  • May 10, 2005 | Authors: Thad Behrens; Matthew S. Chester
  • Law Firm: Haynes and Boone, LLP - Dallas Office
  • On April 19, 2005, the United States Supreme Court issued a decision in Dura Pharmaceuticals, Inc. v. Broudo, 541 U.S. 901, 125 S.Ct. 1627, 2005 WL 885109 (April 19, 2005), which resolved a split among the Circuit Courts of Appeals and held that securities class action plaintiffs must meet a stringent burden of proof with respect to the required element of "loss causation" in securities fraud actions brought under Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder.