SIFMA submitted an Amicus “Friend of the Court” Brief

Court:

U.S. Court of Appeals
(Seventh Circuit)

Amicus Issues:

Whether plaintiffs may satisfy their burden to prove loss causation by invoking the “leakage theory”, under which corrective information revealing the truth about the defendants’ fraud purportedly leaks out over time through a series of partial corrective disclosures, without identifying specific misrepresentations that introduced inflation into the company’s stock price.

Whether the Supreme Court’s holding in Janus, 131 S.Ct. 2296 (2011), is limited to situations in which the defendant and the actual maker of the alleged misrepresentation work for separate entities, and thus does not apply when all the defendants are part of the same corporate family.

Counsel of Record:

Sidley Austin LLP

Jonathan F. Cohn
Eric D. McArthur
Noah T. Katzen

Other Amici:
None.