9th Circuit Extends Tracing Requirement to Section 12(A)(2) of the Securities Act of 1933

Companies that raise capital through public offerings of stock, such as in an IPO, have historically faced a heightened risk of being sued in securities class actions when their stock price falls below the offering price. Partners Virginia Milstead and Mark Foster and associate Michelle Portillo discuss how recent Supreme Court and Ninth Circuit decisions impose strict tracing requirements for investors to establish standing in securities class actions under Sections 11 and 12 of the Securities Act of 1933.