Law.com Subscribers SAVE 30%
Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
Hotline
Second Circuit defines standard for loss causation pleadings: The District Court for the Southern District of New York has ruled that the pleading standard for loss causation in the Second Circuit requires plaintiffs in a securities fraud case to allege a concealment of risk and to show that this concealment caused the plaintiff's loss. Amy Liu v. Credit Suisse First Boston, 04 Civ 3757 (June 27).
The case involved an investor and a class of plaintiffs alleging that the issuers and lead underwriter involved in several IPOs defrauded investors by setting their earnings estimates below their true estimates to dramatically drive up the prices of the IPOs once they went public. In analyzing the proper pleading standard, the court was faced with what it called “ambiguous” precedent in the Second Circuit. The Supreme Court's recent decision in Dura Pharmaceuticals v. Broudo, 125 S.Ct. 1627, 1630 (2005), held that to prove fraud, plaintiffs must provide a direct link between a fall in a company's stock price and the alleged fraud or misrepresentation. In so ruling, the Supreme Court rejected the more liberal standard applied by the Ninth Circuit, which allowed plaintiffs to prove loss causation without showing a direct link between a drop in a company's stock price and misrepresentation or fraud.
This premium content is locked for Entertainment Law & Finance subscribers only
ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN ENTERTAINMENT LAW.
- Stay current on the latest information, rulings, regulations, and trends
- Includes practical, must-have information on copyrights, royalties, AI, and more
- Tap into expert guidance from top entertainment lawyers and experts
Already a have an account? Sign In Now Log In Now
For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473
The DOJ's Corporate Enforcement Policy: One Year Later
The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.
Use of Deferred Prosecution Agreements In White Collar Investigations
This article discusses the practical and policy reasons for the use of DPAs and NPAs in white-collar criminal investigations, and considers the NDAA's new reporting provision and its relationship with other efforts to enhance transparency in DOJ decision-making.
How AI Has Affected PR
When we consider how the use of AI affects legal PR and communications, we have to look at it as an industrywide global phenomenon. A recent online conference provided an overview of the latest AI trends in public relations, and specifically, the impact of AI on communications. Here are some of the key points and takeaways from several of the speakers, who provided current best practices, tips, concerns and case studies.
New York's Latest Cybersecurity Commitment
On Aug. 9, 2023, Gov. Kathy Hochul introduced New York's inaugural comprehensive cybersecurity strategy. In sum, the plan aims to update government networks, bolster county-level digital defenses, and regulate critical infrastructure.