Loss causation

Loss causation is the requirement that the defendant's misconduct, rather than some other factor, caused the plaintiff's loss. It is a frequent battleground in private securities litigation and rarely an issue in regulatory actions.

compliance and practice · updated 2026-09-08

See also

• Event study — An event study measures the price reaction to a specific event against what would otherwise have been expected. It is the standard…
• Private right of action — A private right of action lets an injured party sue directly rather than relying on a regulator. Rule 10b-5 carries an implied one…

Terms that refer here

Class action · Private right of action

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