Words / L / Law

loss causation

noun

C2CEFR level
88/100Rarity: very rare
TechnicalRegister

The requirement that a plaintiff show the defendant's misrepresentation, and not other market forces, actually caused the claimed investment loss.

Their expert never disentangled the fraud from the sector-wide selloff, so loss causation was fatally thin.

Similar: proximate causation

Topic: Banking & finance law in Legal English

Rarity runs from 0 (a word everyone knows) to 100 (almost never seen outside specialist or literary writing). Level is the word's real difficulty on the CEFR scale, from A1 to C2.

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