Singer v. Reali, No. 15-2579 (4th Cir. 2018)Annotate this Case
In these appeals arising from the dismissal of a securities fraud class action complaint, the complaint alleged that the Company conjured up and carried out a scheme that enabled surgeons to utilize the AxiaLIF system and secure fraudulent reimbursements from various health insurers and government-funded healthcare programs. In regard to appeal No. 15-2579, the Fourth Circuit held that the Complaint satisfied the misrepresentation and scienter elements of the section 10(b) claim of the Securities Exchange Act. Therefore, the court vacated the district court's ruling holding otherwise. In regard to appeal No. 16-1019, the court affirmed the district court's ruling that the complaint sufficiently alleged the loss causation element. The court remanded for further proceedings.