Panel: Section 10(b) Claims Seeking Rescission Must Show Economic Loss

SAN FRANCISCO - In order for a plaintiff to sue under Section 10(b) of the Securities Exchange Act of 1934 seeking rescission, he must properly plead economic loss and demonstrate that the alleged misrepresentation caused the loss, a split Ninth Circuit U.S. Court of Appeals panel ruled Dec. 2, in affirming in part, reversing in part, remanding in part and vacating in part a federal district court ruling (Strategic Diversity, Inc., et al. v. Alchemix Corp., et al., Nos. 10-15256 and 10-16404, 9th Cir.; 2011 U.S. App. LEXIS 23928). Full story on lexis.com