Dura Pharmaceuticals, Inc. v. Broudo
Primary source
Background below is sourced from Wikipedia (CC BY-SA 4.0). We link back to the source for attribution; edits made by Wikipedia editors after our last scrape may not appear here.
Background
From Wikipedia, the free encyclopedia
2005 United States Supreme Court case
Dura Pharmaceuticals, Inc. v. Broudo, 544 U.S. 336 (2005), is a securities fraud decision by the Supreme Court of the United States , holding that an inflated purchase price will not by itself constitute or proximately cause the relevant economic loss needed to allege and prove "loss causation."
Background
[(https://en.wikipedia.org/w/index.php?title=Dura_Pharmaceuticals,_Inc._v._Broudo&action=edit§ion=1 "Edit section: Background")
]
Main article: Strike suit
Facts
[(https://en.wikipedia.org/w/index.php?title=Dura_Pharmaceuticals,_Inc._v._Broudo&action=edit§ion=2 "Edit section: Facts")
]
Respondents are individuals who bought stock in Dura Pharmaceuticals, on the public securities market between April 15, 1997, and February 24, 1998.
Procedural history
[(https://en.wikipedia.org/w/index.php?title=Dura_Pharmaceuticals,_Inc._v._Broudo&action=edit§ion=3 "Edit section: Procedural history")
]
The District Court dismissed the complaint. In respect to the plaintiffs' drug-profitability claim, it held that the complaint failed adequately to allege an appropriate state of mind, i.e., that defendants had acted knowingly, or the like. In respect to the plaintiffs' spray device claim, it held that the complaint failed adequately to allege "loss causation."
The Court of Appeals for the Ninth Circuit reversed. In the portion of the court's decision now before us—the portion that concerns the spray device claim—the Circuit held that the complaint adequately alleged "loss causation." The Circuit wrote that "plaintiffs establish loss causation if they have shown that the price on the date of purchase was inflated because of the misrepresentation." 339 F. 3d, at 938 (emphasis in original; internal quotation marks omitted). It added that "the injury occurs at the time of the transaction." Ibid. Since the complaint pleaded "that the price at the time of purchase was overstated," and it sufficiently identified the cause, its allegations were legally sufficient. Ibid.
Because the Ninth Circuit's views about loss causation differ from those of other Circuits that have considered this issue, we granted Dura's petition for certiorari.
External links
[(https://en.wikipedia.org/w/index.php?title=Dura_Pharmaceuticals,_Inc._v._Broudo&action=edit§ion=4 "Edit section: External links")
]
- Text of Dura Pharmaceuticals, Inc. v. Broudo, 544 U.S. 336 (2005) is available from: Cornell CourtListener Google Scholar Internet Archive (docket files) Justia OpenJurist Oyez (oral argument audio)
Retrieved from "https://en.wikipedia.org/w/index.php?title=Dura_Pharmaceuticals,_Inc._v._Broudo&oldid=1351345383 "
Hidden categories:
Search
Search
Dura Pharmaceuticals, Inc. v. Broudo
Add languages Add topic
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.