To prevail on a securities fraud claim,a plaintiff must prove "loss causation," that the defendant's misstatement caused the plaintiff to suffer economic loss.

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To prevail on a securities fraud claim, a plaintiff must prove all of the following: a material misrepresentation or omission; scienter, or a wrongful state of mind; a connection with the purchase or sale of a security; reliance upon the misrepresentation or omission; economic loss; and loss causation, that the defendant's misstatement caused the plaintiff to suffer economic loss.

To Prevail on a Securities Fraud Claim,a Plaintiff Must Prove