44-2085. Limitation on damages;
definition
A. Except as provided in subsection B of this section, in any private action
arising under section 44-1991 or 44-1992 in which the plaintiff seeks to establish
damages by reference to the market price of a security, the award of damages to the
plaintiff shall not exceed the difference between the purchase or sale price paid or
received, as appropriate, by the plaintiff for the security and the mean trading price of
that security during the ninety days beginning on the date on which the information
correcting the misstatement or omission that is the basis for the action is disseminated
to the market.
B. In any private action arising under section 44-1991 or 44-1992 in which the
plaintiff seeks to establish damages by reference to the market price of a security, if
the plaintiff sells or repurchases the security before the expiration of the ninety day
period prescribed in subsection A of this section, the plaintiff's damages shall not
exceed the difference between the purchase or sale price paid or received by the
plaintiff for the security and the mean trading price of the security during the period
beginning immediately after dissemination of information correcting the misstatement or
omission and ending on the date on which the plaintiff sells or repurchases the security.
C. This section shall not apply to damages caused by a violation of section 44-1841
or 44-1842.
D. For purposes of this section, "mean trading price of the security" means an
average of the daily trading price of that security, determined as of the close of the
market each day during the relevant period.
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