Chapter 14 - § 14.8 • DAMAGES

• Jurisdiction: Colorado

§ 14.8 • DAMAGES

Damages have always been difficult to calculate, and are speculative. As noted in the Conference Report, between the time a misrepresentation is made and the time the market receives corrected information, the price of a security may rise or fall for reasons unrelated to the alleged fraud. The PSLRA added 1934 Act § 21D(e) to provide a "look back" period for the calculation of damages. This intends to limit damages to those losses caused by the fraud and not by other market conditions. This provision requires that damages be calculated at the "mean trading price" of the...