In a unanimous opinion, and without argument, the Court of Appeals found that the complaint “has it all” alleging “fraud on top of fraud.” The lower court found the pension funds failed to properly plead loss causation – that the decline in NextEra’s stock price was causally connected to the alleged misrepresentations - but the appeal’s court reversed. The Court found that the district court “improperly searched for a singular corrective disclosure. This both contravenes our precedent and erroneously assumes markets cannot link multiple pieces of information.” The Court also found that “the second amended complaint alleges facts that, when read together, plausibly imply enough truth was illuminated to cause investors to seriously question [Defendants’] earlier misstatements.” Finally, the Appeals’ Court found that “to properly examine the relationship between corrective disclosures and earlier fraud, we must consider the proffered statements in toto.”
The case is Jastram v. NextEra Energy, Inc., et. al., ___ F. 4th ____, 2025 WL 3293701 (11th Cir. Nov. 26, 2025).