• In Re Omnicom: Second Circuit Issues Stringent Standard to Establishing Loss Causation in Securities Fraud Cases
  • May 5, 2010 | Authors: Gary D. Anderson; Maggie Sklar
  • Law Firm: Greenberg Traurig, LLP - Washington Office
  • On March 9, 2010, the U.S. Court of Appeals for the Second Circuit issued a decision in In re Omnicom Group Inc. Securities Litigation, No. 08-612-cv, 2010 WL 774311 (2d Cir. March 9, 2010), in which the court continued to raise the bar for a securities fraud plaintiff to establish the “loss causation” element for Section 10(b) claims. The Second Circuit affirmed the decision, originally handed down by Judge William H. Pauley of the Southern District of New York, which dismissed the securities fraud case against advertising conglomerate Omnicom, Inc. and various members of its management. In so holding, the court made the following determinations on key loss causation issues prevalent in securities fraud cases: