Possible Circuit Split in Calculating Loss Under Sentencing Guidelines

Litigation partner Alan R. Friedman and associate Theodore S. Hertzberg’s article “Possible Circuit Split in Calculating Loss Under Sentencing Guidelines” appeared in the January 15, 2010 issue of the New York Law Journal.

The article examines a recent decision by the Court of Appeals for the Ninth Circuit that held that federal judges calculating the amount of loss for Sentencing Guidelines purposes in criminal securities fraud cases need not adhere to the loss causation principles that the Supreme Court has ruled must be applied in private securities actions. If strictly adhered to, the Ninth Circuit’s decision may create a conflict with at least two other circuits, potentially requiring resolution by the Supreme Court.