Baker

MEMORANDUM *

Plaintiffs filed a class action lawsuit based on securities fraud against several individual defendants (collectively “Defendants”) that held various positions in Red-back Networks, Inc. (“Redback”). Plaintiffs appeal the district court’s dismissal of Plaintiffs’ complaint for failure to state a claim upon which relief can be granted. We have jurisdiction under 28 U.S.C. § 1291 , and we affirm. This Court reviews dismissals for failure to state a claim pursuant to Federal Rule of Civil Procedure 12(b)(6) de novo. Thompson v. Paul, 547 F.3d 1055, 1058 (9th Cir.2008).

Even assuming Plaintiffs adequately pleaded falsity for their fraudulent statement claim, Plaintiffs have not adequately pleaded loss causation. See Dura Pharms., Inc. v. Broudo, 544 U.S. 336, 347 , 125 S.Ct. 1627 , 161 L.Ed.2d 577 (2005) (holding loss causation not adequately pleaded when the complaint did not claim that the “share price fell significantly after the truth became known”). Plaintiffs’ allegations that the loss was caused by investors learning the alleged truth (that Red-back generated its business with Qwest through improper means) are conclusory and involve unreasonable inferences. See…