Dura Pharmaceuticals, Inc. v. Broudo, 544 U.S. 336 (2005), is a securities fraud decision by the Supreme Court of the United States, holding that an inflated purchase price will not by itself constitute or proximately cause the relevant economic loss needed to allege and prove "loss causation."

Respondents are individuals who bought stock in Dura Pharmaceuticals, on the public securities market between April 15, 1997, and February 24, 1998.

In respect to the plaintiffs' drug-profitability claim, it held that the complaint failed adequately to allege an appropriate state of mind, i.e., that defendants had acted knowingly, or the like.

In respect to the plaintiffs' spray device claim, it held that the complaint failed adequately to allege "loss causation."

The Circuit wrote that "plaintiffs establish loss causation if they have shown that the price on the date of purchase was inflated because of the misrepresentation."