Fannie Mae-No Politics (FNMA)

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Sixth Circuit Court of Appeals Accepts Materialization-of-Risk Standard for Loss Causation
Thursday, July 21, 2016
The U.S. Court of Appeals for the Sixth Circuit yesterday recognized the “materialization of the risk” standard as a means of proving loss causation in securities-fraud cases. The court’s decision in Ohio Public Employees Retirement System v. Federal Home Loan Mortgage Corp. aligns the Sixth Circuit with the majority of other circuits, which have also allowed plaintiffs to plead loss causation by alleging damages arising from a materialization of a concealed risk, even in the absence of a corrective disclosure of the previously hidden or misstated “truth.”

http://www.natlawreview.com/article/sixth-circuit-court-appeals-accepts-materialization-risk-standard-loss-causation