Securities Regulation
Advanced
Loss Causation
A requirement in securities-fraud litigation that connects the alleged misstatement, omission, or misconduct to the investor's economic loss.
Why It Matters
Loss causation separates price inflation or transaction reliance from recoverable loss, making it central to damages, event studies, corrective disclosures, and the economic design of antifraud liability.
Selected Literature
A short list of directly relevant archive entries.
1980
Advanced
Accuracy of Predictions in the Event Study Methodology
Stephen J. Brown and Jerold B. Warner
Journal of Financial Economics
1997
Advanced
1999
Advanced
The Scope of Private Securities Litigation: In Search of Liability Standards for Secondary Defendants
Jill E. Fisch
Columbia Law Review
2017
Advanced
Related Cases
1975
Securities Regulation
Blue Chip Stamps v. Manor Drug Stores
421 U.S. 723 (1975)
Standing to bring private Rule 10b-5 damages actions and the purchaser-seller limitation.
2014
Securities Regulation
Halliburton Co. v. Erica P. John Fund, Inc.
573 U.S. 258 (2014)
Fraud-on-the-market reliance, class certification, and price-impact evidence in securities-fraud class actions.
1976
Securities Regulation
Ernst & Ernst v. Hochfelder
425 U.S. 185 (1976)
Scienter requirement for private damages actions under Section 10(b) and Rule 10b-5.
1977
Securities Regulation
Santa Fe Industries, Inc. v. Green
430 U.S. 462 (1977)
Whether unfairness in a freeze-out merger, without deception or manipulation, states a federal securities-fraud claim.