Loos v. Immersion Corp., et al., No. 12-15100 (9th Cir. 2014)
Annotate this CasePlaintiff 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.
Court Description: Securities Fraud. The panel affirmed the district court’s dismissal for failure to state a claim of a securities fraud class action alleging violations of Sections 10(b), 20(a), and 20A of the Securities Exchange Act of 1934 and Rule 10b-5. Agreeing with the Eleventh Circuit, the panel held that the announcement of an investigation, standing alone, is insufficient to establish loss causation. It held that the plaintiff could not establish loss causation on the facts alleged in the amended complaint because he had not attempted to correlate his losses to anything other than the announcement of an internal investigation.
The court issued a subsequent related opinion or order on September 11, 2014.
Some case metadata and case summaries were written with the help of AI, which can produce inaccuracies. You should read the full case before relying on it for legal research purposes.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.