The causation requirement for s 52 Trade Practices Act claims based on misleading corporate statements requires proof that the misleading statements were a material contributing cause of the plaintiff's decision to purchase shares, assessed on the individual facts of each case. The 'fraud on the market' doctrine has not been successfully invoked in Australia and remains an open question. Following Sons of Gwalia v Margaretic, s 563A of the Corporations Act does not subordinate shareholder claims for misleading conduct in a liquidation.
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