On April 19, the U.S. Supreme Court handed down a unanimous decision that may make it tougher for investors to recover compensation when companies make misleading disclosure. In Dura Pharmaceuticals v. Broudo, the Court held that a plaintiff in a U.S. securities fraud lawsuit must prove that the misrepresentation caused the plaintiff’s loss. It is not sufficient for the plaintiff simply to show that the misrepresentation caused the price of the stock to be inflated on the day he bought it. Rather, the plaintiff must demonstrate that a subsequent lowering of the stock price was caused by the misrepresentation....

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