Mineworkers' Pension Scheme v. First Solar Inc.
United States Court of Appeals for the Ninth Circuit
881 F.3d 750 (2018)
The Mineworkers' Pension Scheme (plaintiff) bought stock in First Solar (defendant) and sued under section 10(b), alleging First Solar became aware of a manufacturing defect in one of its products, initially concealed it from investors, and later misrepresented its extent; when the full extent of the defect became public, First Solar's stock dropped from roughly $300 to about $50 per share. The district court largely denied First Solar's motion for summary judgment but certified the proper loss-causation standard to the Ninth Circuit.
Whether the traditional proximate-cause standard is the appropriate standard for determining, in a private action under section 10(b) of the Securities Exchange Act of 1934, whether the alleged conduct caused the plaintiff's loss.