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Dura Duress: The Supreme Court Mandates A More Rigorous Pleading And Proof Requirement For Loss Causation Under Rule Lob-5 Class Actions, Jared Neas

University of Colorado Law Review

The Supreme Court's holding in Dura Pharmaceuticals, Inc. v. Broudo imposes a heightened pleading requirement for private plaintiffins misrepresentation or omission securities class actions under Rule lOb-5. The Court verified that a plaintiff must adequately plead loss causation in its complaint and rejected the Ninth Circuit's interpretation of the loss causation standard. The Supreme Court held that the plaintif's pleadings in Dura did not meet the loss causation requirement of the Private Securities Litigation Reform Act ("PSLRA'). The Court also rejected the Ninth Circuit's requirement that the alleged misconduct merely "touch upon " the economic loss. Instead, the Supreme Court …