How 2nd Circ. Raised the Bar for Pleading Securities Fraud

In Huey v. Anavex Life Sciences Corp., the Second Circuit appears to have increased the burden on lead plaintiffs in pleading loss causation — and district courts in evaluating such a pleading — where there is no immediately evidenced causal link. Partner Michael Restey and associate Nikita Ganesh discuss how the ruling represents a significant expansion of a lead plaintiff's burden in pleading loss causation, as well as a court's role in evaluating such a pleading, under the Second Circuit's 2005 decision in Lentell v. Merrill Lynch & Co.