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Taking A More Sophisticated Approach To Market Efficiency: How Securities Analyst Reports Can Be Used To Establish Loss Causation In A Federal Securities Fraud Action, Bernard S. Sharfman

Bernard S Sharfman

In the newly evolving case law of what constitutes a corrective disclosure, a recent U.S. District Court for the District of Arizona decision in In re Apollo Group, Inc. Securities Litigation has brought to the fore the issue of whether or not corrective disclosures must come only in the form of “hard facts,” such as the public disclosure of prospective accounting restatements or the failure of the FDA to approve a drug for public use, or if they can also come in the form of “soft facts,” i.e., a public disclosure of how a securities analyst has changed her opinion …