On August 23, 2017, the Second Circuit issued its second significant decision on insider trading liability in the past three years, United States v. Martoma. In its 2014 decision in United States v. Newman, the Second Circuit limited the circumstances in which the government could prove insider trading on evidence that someone privy to inside information (a tipper) passed that information to another person (a tippee) who then traded on the information. Last year, the US Supreme Court’s decision in United States v. Salman called into doubt some of the limits imposed in Newman, but the scope … Read more
On August 7, 2014, the Ninth Circuit issued its decision in Loos v. Immersion Corporation, addressing for the first time whether a company’s announcement of an internal investigation into fraud is, alone, sufficient to establish “loss causation” for claims under the federal securities laws. The Court held that the mere announcement of an investigation was not sufficient to plead loss causation. The decision in Loos solidifies defendants’ position that the disclosure of a “risk” or “potential” for fraud cannot stand as the revelation of fraud to support loss causation arguments at the pleadings stage.
Dura Pharmaceuticals: Defining the … Read more