Dura Pharmaceuticals, Inc. v. Michael Broudo

Investors (defendants in this appeal, originally plaintiffs below) sued Dura Pharmaceuticals (plaintiff on this appeal, originally the corporate defendant) for securities fraud after Dura admitted making false statements about its drug pipeline and financial health. The district court dismissed the complaint; the Ninth Circuit reversed, holding it was enough to allege the stock price was inflated by the misrepresentations at the time of purchase, without requiring further proof connecting that inflation to an actual, realized loss. Dura sought certiorari.