An expert analysis of the loss causation element of a federal securities fraud claim must link the purchasers' loss with the fraud. The expert must match the lie with an inflation in price (when the purchaser bought the security) and tie disclosure of the truth to a loss-producing drop (when the purchaser sold or as of the time of trial if he didn't unload the shares). And he mustn't fail to account for other likely causes of ups and downs in the security's price.
The Tenth Circuit grappled with an expert's report on loss causation today and found the analysis wanting. In re Williams Securities Litig. — WCG Subclass, No. 07-5119 (10th Cir. Feb. 18, 2009).
[Blawgletter's firm arrived late to the case but got into it in time to see it go the way of the dinosaurs. Kismet?]
