Proving fraud in the financial crisis hasn’t been easy for plaintiffs

Even “in the face of overwhelming evidence” that investors suffered massive losses during the financial crisis – judges haven’t been willing to assume that defendants in lawsuits intended to decieve anyone ( a necessary element of a suit for fraud).  In several notable cases, judges found that the losses were more likely caused by the economic meltdown than by any alleged fraud, noting that other investors suffered similar losses at the same time, according to two securities lawyers writing for Thomas Reuters. This shouldn’t be a surprise, they say. Judges need more than “conclusory assertions” to prove fraud.

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