In an article published in the New York Law Journal, Milbank LLP Litigation & Arbitration partners Grant Mainland and Jed Schwartz, and associate Joseph DaSilva, discuss recent developments in securities class actions that defendants in §10(b) cases should consider in crafting their litigation strategy.
In “Recent Developments in Securities Class Actions: ‘Goldman’, Market Speculation and Loss Causation, and Triggering the Exchange Act’s Statute of Repose,” the authors focus on three topics: (1) the Supreme Court’s decision in Goldman Sachs Group v. Arkansas Teacher Retirement System clarifying that courts should consider the generic nature of a misrepresentation as part of price impact disputes at the class certification stage; (2) cases addressing whether stock drops resulting from market speculation are recoverable as securities fraud damages under Dura Pharmaceuticals v. Broudo and progeny; and (3) a growing consensus among district courts in the Second Circuit that the Exchange Act’s statute of repose is measured from the date of each alleged misrepresentation, rather than the last one.
