More than Basic: Causation in Securities Misstatement Cases

Show simple item record Liu, Benchao en 2017-02-17T03:05:14Z en 2016-06 en
dc.identifier.citation New Zealand Universities Law Review 27(1):55-72 Jun 2016 en
dc.identifier.issn 0549-0618 en
dc.identifier.uri en
dc.description.abstract In misstatement cases, a causal link can be based on the claimant’s reliance on the misstatement (direct causation), or the reliance of a third party or a class of third parties (indirect causation). In terms of direct causation, whether the misstatement is a cause of the loss can be determined by the ‘but-for’ test and, in cases where a non-fraudulent misstatement would be in the plaintiff’s favour assuming it were true, by the SAAMCO test. While the general rule is that the burden of proof for causation is on the plaintiff, this has been changed by statutes in the United States, Ontario and New Zealand regarding misstatements in prospectuses. In addition, the United States case law has created a presumption of reliance in class actions. The purpose of these measures is to address the evidential difficulties faced by investors in securities misstatement cases. Currently, neither approach has been adopted under the Australian law. However, a string of recent interlocutory judgments show that a market-based causation is at least arguable in the context of securities class actions. en
dc.relation.ispartofseries New Zealand Universities Law Review en
dc.rights Items in ResearchSpace are protected by copyright, with all rights reserved, unless otherwise indicated. Previously published items are made available in accordance with the copyright policy of the publisher. en
dc.rights.uri en
dc.title More than Basic: Causation in Securities Misstatement Cases en
dc.type Journal Article en
pubs.issue 1 en
pubs.begin-page 55 en
pubs.volume 27 en
dc.rights.holder Copyright: Oxford University Press (OUP) en en
pubs.end-page 72 en
dc.rights.accessrights en
pubs.subtype Article en
pubs.elements-id 535449 en Business and Economics en Commercial Law en
pubs.record-created-at-source-date 2016-07-12 en

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