The Second Circuit Clarifies When Securities Plaintiffs Face “Heightened Burden” to Plead Loss Causation

The Second Circuit recently clarified how securities-fraud plaintiffs must plead loss causation where a company’s stock price does not immediately decline following a corrective disclosure. In Huey v. Anavex Life Sciences Corp., --- F.4th ---- , 2026 WL 1838665 (2d Cir. June 26, 2026), the Court affirmed dismissal of a putative securities class action, holding that the plaintiff failed to plausibly allege that the asserted misrepresentation caused her losses.

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