“The United States Court of Appeals for the Tenth Circuit recently decided a large securities fraud case that will have a significant impact on evidentiary standards pertaining to loss causation theories. The court’s February 18, 2009, opinion was its first to apply the Supreme Court’s loss causation standard set forth in Dura Pharmaceuticals, Inc. v. Broudo.1 The case, In re Williams Securities Litigation—WCG Subclass,2 addressed the question of whether the district court abused its discretion in granting summary judgment to the defendants on the issue of loss causation after excluding the plaintiffs’ expert witness testimony. The court excluded the expert’s testimony on the ground that his loss causation scenarios were based on an unreliable methodology.”
By Bryan L. Phipps
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