Loos v. Immersion Corp., et al.

Plaintiff appealed the dismissal of his securities fraud class action for failure to state a claim. The court, agreeing with the Eleventh Circuit, held that the announcement of an investigation, standing alone, is insufficient to establish loss causation; plaintiff cannot establish loss causation on the facts alleged in the amended complaint because he has not attempted to correlate his losses to anything other than the announcement of an internal investigation; and, therefore, the court affirmed the district court on this loss causation issue. The court did not reach plaintiff's arguments regarding scienter. View "Loos v. Immersion Corp., et al." on Justia Law