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First Solar and its Effect on Securities Fraud Actions

(451 reviews)

Produced on April 30, 2018

$ 89 Business, Corporate, & Securities and Litigation In Stock
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Course Information

Time 1h 3m
Difficulty Intermediate

Course Description

On January 31, 2018, the Ninth Circuit Court of Appeals issued an important decision in the First Solar case resolving an intra-circuit split as to the proper test for loss causation in securities fraud actions. The decision sides with a line of cases stating that plaintiffs need only show a causal connection between the facts that were misrepresented and the resulting loss. Those cases stand in sharp contrast to a group of cases that set forth a more restrictive test that would only allow plaintiffs to recover where the market specifically learns of defendants’ precise fraudulent practices. First Solar significantly eases the burden on plaintiffs to prove loss causation in the 9th Circuit by allowing plaintiffs to show loss causation where defendants’ revealed information that is related to the fraud (for example, an earnings miss resulting from the fraud) rather than having to show that the defendants revealed the actual and specific fraud itself.   

Join Carol C. Villegas and James Christie for a discussion on these issues. Ms. Villegas is a partner and Mr. Christie is an associate at Labaton Sucharow LLP. Ms. Villegas and Mr. Christie represent institutional investors (such as public pension funds and hedge funds) who have suffered financial losses in the stock market as a result of securities fraud committed by publicly traded companies and their officers and executives.        

Learning Objectives:

  1. Familiarize yourself with the current landscape of loss causation law standards across the country, circuit by circuit, as it pertains to securities fraud
  2. Analyze the Ninth Circuit’s decision in First Solar and what it means for both plaintiffs and defendants in securities fraud actions going forward
  3. Develop best practices for pleading loss causation and defending against loss causation allegations in today’s legal environment
  4. Discuss whether the issue is ripe for Supreme Court review or whether the seminal loss causation case Dura v. Broudo remains intact

Credit Information

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Carol Villegas

Labaton Sucharow

Carol C. Villegas focuses on prosecuting complex securities fraud cases on behalf of institutional investors. Leading one of the Firm’s litigation teams, she currently oversees litigation against DeVry Education Group, Skechers, U.S.A., Inc., Nimble Storage, Liquidity Services, Inc., Extreme Networks, Inc., and SanDisk. In addition to her litigation responsibilities, Carol holds a variety of leadership positions within the Firm, including serving on the Firm's Executive Committee and serving as Co-Chair of the Firm's Women's Networking and Mentoring Initiative.

Carol’s skillful handling of discovery work, her development of innovative case theories in complex cases, and her adept ability during oral argument earned her recent accolades from the New York Law Journal as a Top Woman in Law as well as a Rising Star by Benchmark Litigation.

Carol played a pivotal role in securing favorable settlements for investors from AMD, a multi-national semiconductor company, Aeropostale, a leader in the international retail apparel industry, ViroPharma Inc., a biopharmaceutical company, and Vocera, a healthcare communications provider. A true advocate for her clients, Carol’s argument in the case against Vocera resulted in a ruling from the bench, denying defendants motion to dismiss in that case.

Prior to joining Labaton Sucharow, Carol served as the Assistant District Attorney in the Supreme Court Bureau for the Richmond County District Attorney's office, where she took several cases to trial. She began her career as an associate at King & Spalding LLP, where she worked as a federal litigator.

Carol received a J.D. from New York University School of Law, and she was the recipient of The Irving H. Jurow Achievement Award for the Study of Law and selected to receive the Association of the Bar of the City of New York Minority Fellowship. Carol served as the Staff Editor, and later the Notes Editor, of the Environmental Law Journal. She earned a B.A., with honors, in English and Politics from New York University.

Carol is a member of the National Association of Public Pension Attorneys (NAPPA), the National Association of Women Lawyers (NAWL), the Hispanic National Bar Association, the Association of the Bar of the City of New York, and a member of the Executive Council for the New York State Bar Association's Committee on Women in the Law.

She is fluent in Spanish.

James Christie

Labaton Sucharow

James Christie focuses on prosecuting complex securities fraud cases on behalf of institutional investors. James currently litigates cases against Intuitive Surgical, Advanced Micro Devices, Sprouts Farmers Market, Qualcomm, and Lifelock.

James previously served as a judicial intern in the United States District Court, Eastern District of New York under the Honorable Sandra J. Feuerstein.

James earned a J.D. from St. John’s University School of Law, where he was the Senior Articles Editor of the St. John’s Law Review, and his B.S., cum laude, from St. John’s University Tobin College of Business.


Charles W.

Great duo for presentation; second course where they presented

Stephanie T.

Great course!

Stephen S.


Robert G.

This lecture was very interesting. I plan to study the case they referenced when I have some free time.

Nina Anne G.

Very engaging speakers -- their enthusiasm was contagious. Thanks -- I learned a lot.

Jennifer C.

This one was extra great. Very practical and great energy.

Suuzen Ty A.

Excellent analysis of current state of law.

Carolyn D.

I like 2 presenters

Irina V.

The panelists were excellent! Very substantive and informative presentation on loss causation issues, full of helpful practice pointers and insights. The presenters were very personable and articulate as well. Loss causation may not seem like the most exciting of topics, but the presenters made it sound very interesting. I would highly recommend.

Peter C.

Great presentation, one of the best I've seen on Lawline. Good work presenters!

Marian W.

Very interesting - presentation style was very informative. I appreciated the back-and-forth between the speakers. It added significantly to the program. Thanks.

Lynn D.

These two were awesome together. The casual back and forth presentation and discussion style was really effective and interesting.

Stephen B.

Well done by the presenters.

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