BofI Holding, Inc. v. Houston Municipal Employees Pension System
1. Whether disputed public allegations about an issuer or its business, without any additional corroborating disclosure or event, reveal to an efficient market the “truth” for purposes of establishing loss causation under Dura (as held by the Sixth and Ninth Circuits, in direct conflict with the Eleventh Circuit).
2. Whether allowing a plaintiff to show that a disclosure or event revealed the “truth” about the issuer or its business by pointing to the magnitude of the decline in the price of the issuer’s stock conflicts with Dura and misapplies Basic.
3. Whether the Court should overrule Basic to the extent it recognizes the ECMH, as that economic theory sows confusion in the lower courts with respect to the proper analysis of loss causation.