This month we discuss the March 9, 2010, decision of the U.S. Court of Appeals for the Second Circuit in In re Omnicom Group Inc. Securities Litigation,1 in which the Second Circuit continued to develop its standards for establishing loss causation in cases brought under §10(b) of the Securities Exchange Act. In its decision, written by Circuit Judge Ralph K. Winter and joined by Circuit Judges Wilfred Feinberg and José A. Cabranes, the court affirmed the district court’s dismissal on summary judgment of securities fraud claims against Omnicom Group Inc. and its management, finding that plaintiffs had failed to proffer sufficient evidence to satisfy either of the two principal pathways to proving loss causation set forth in the Second Circuit’s landmark loss causation ruling, Lentell v. Merrill Lynch & Co. Inc.2
Procedural History
The Omnicom plaintiffs’ fraud claims were based on allegations of fraudulent accounting in connection with Omnicom’s 2001 Seneca transaction. Plaintiffs allege that, in 2000, Omnicom, a large global marketing and advertising holding company, began to sustain losses on investments in several Internet marketing and advertising companies (the “Internet Companies”).
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
