On August 1st, the Second Circuit reinstated a securities fraud lawsuit alleging that defendants had misled investors about China North East Petroleum Holdings Limited's earnings, oil reserves, and internal controls. Noting that the company's stock price rose after corrective disclosures were made, the district court dismissed the lawsuit for failing to plead an economic loss. Vacating and remanding, the Second Circuit held that a quick recovery in stock price after it falls does not negate an inference of economic loss and loss causation at the pleading stage. Acticon AG v. China North East Petroleum, Ltd.