Lentell v. Merrill Lynch & Co., Inc.
United States Court of Appeals for the Second Circuit
396 F.3d 161 (2005)
Relevant factsFree
Lentell and other investors (plaintiffs) in 24/7 Real Media and Interliant sued Merrill Lynch (defendant), alleging its analysts recommended the stocks despite privately doubting they were good investments, hoping to attract business from the companies. The district court dismissed the complaint because Lentell never alleged that Merrill's misrepresentations actually caused his losses.
IssueFree
Whether a pleading in a securities fraud case must allege that the subject of a fraudulent statement was the cause of the actual loss suffered.
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