The court of appeals affirmed a district court judgment. The court held that stock price evidence could be used in a loss causation assessment even where the market for a stock was not Cammer-level efficient.
Thane International, Inc. and Reliant Interactive Media Corp agreed to merge. Under the merger, Reliant shareholders were to receive shares of Thane in exchange for their shares of Reliant. The prospectus filed by Thane with the Securities and Exchange Commission (SEC) indicated that Thane stock, which had not traded publicly, was approved for trading on the NASDAQ National Market upon the merger’s completion, so long as Thane met the minimum bid price requirements of $5 per share.
