In Re China North East Petroleum Holdings Ltd. Securities Litigation, 819 F. Supp. 2d 351

Acticon AG leads a consolidated putative class action under §§ 10(b) & 20(a) and Rule 10b-5.
Defendants include China North East Petroleum Holdings Ltd. and several individuals and entities.
Acticon purchased 60,000 NEP shares across multiple dates for $434,950 (avg $7.25).
Final corrective disclosure alleged to be September 1, 2010; Acticon held shares for months afterward.
Acticon had opportunities to sell at a profit on twelve post-disclosure days but did not.
Between Dec 2010 and May 2011 Acticon sold some shares at losses, ranging $3.50–$6.33.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether Acticon suffered economic loss under 10b-5.	Acticon asserts losses attributable to alleged misrepresentations after the disclosure.	No loss because post-disclosure price recovered above purchase price and later losses cannot be tied to misrepresentation.	No economic loss; claims dismissed.

Dura Pharmaceuticals, Inc. v. Broudo, 544 U.S. 336 (U.S. 2005) (economic loss requires post-disclosure price decline after truthful disclosure)
Ross v. Walton, 668 F. Supp. 2d 32 (D.D.C. 2009) (price fluctuations without realized loss do not establish loss)