In This Edition

Spotlight

• Second Circuit Expands Loss Causation Pleading Requirements

Recent Cases of Note

Consumer Goods and Retailing

Digital Assets

• Dismissal of Securities Fraud Claims Granted in Crypto Dispute (S.D.N.Y.)

Health Care and Life Sciences

Media

Mergers and Acquisitions

• Advisors Need Not Disclose Immaterial Conflicts in Noncontroller M&A (Del. Ch.)

Technology

• SLUSA Bars Claims That Meta's Ads Lured Users to Scam Chat Groups (N.D. Cal.)

Spotlight

Second Circuit Expands Loss Causation Pleading Requirements

Contributing Partner: Michael W. Restey Jr.
Contributing Associate: Nikita Ganesh

Executive Summary

• What’s new: The Second Circuit affirmed dismissal of a securities fraud complaint, expanding loss causation pleading requirements when no immediate price decline follows corrective disclosure.
• Why it matters: The ruling appears to increase lead plaintiffs’ burden and district courts’ role in evaluating pleading for securities fraud complaints with price-reaction disconnections.
• What to do next: Companies facing securities fraud complaints will want to assess alleged corrective disclosures against market movements, time gaps and disconnections between price reaction and alleged loss.

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On June 26, 2026, the U.S. Court of Appeals for the Second Circuit issued a decision affirming the dismissal of a securities fraud complaint for failing to adequately allege loss causation where the stock price increased upon the...

Read Full Story: https://news.google.com/rss/articles/CBMie0FVX3lxTFA4QUF0a2RyTlFnT29waERUMThr...