The following excerpt is from Kelsey v. Muskin Inc., 848 F.2d 39 (2nd Cir. 1988):
We need not, however, decide these issues, for even if they were resolved in favor of plaintiffs, we would be required to uphold the dismissal of the complaint. An injured person may not recover under the Act unless his injury occurred "by reason of" a rule violation. 15 U.S.C. Sec. 2072(a). Where the alleged violation is a failure to disclose, the "by reason of" requirement means that there must be a causal connection between the injury and the nondisclosure. In light of the undisputed facts, we agree with the district court's conclusion that plaintiffs cannot establish that Kelsey's injury occurred "by reason of" any failure to disclose. See Caraballo v. United States, 830 F.2d 19, 22-23 (2d Cir.1987).
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