When Does 'Fraud on the Market' Induce a Right to Damages?

Sections 1041E and 1041H of the Corporations Act 2001 (Cth) give investors a right to trade in a market that is free of false statements. Section 1041I of the Corporations Act 2001 (Cth) gives investors compensation for loss or damage caused ‘by’ conduct that breaches ss 1041E to 1041H. However, the courts’ current approach to determining when loss is caused ‘by’ breaches of ss 1041E or 1041H is unclear and does not quadrate with the nature of false statements. This paper examines the interpretation of ‘by’ to determine the appropriate causal nexus between breach of ss 1041E and 1041H, and compensation under s 1041I.