U.S. Supreme Court Clarifies And Tightens The Pleading Requirements For Private Securities Fraud Lawsuits.
Mondaq Business Briefing › Nbr. 2007, January 2007
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U.S. Supreme Court Clarifies And Tightens The Pleading Requirements For Private Securities Fraud Lawsuits.
On June 21, the United States Supreme Court issued its much-anticipated decision in Tellabs, Inc. v. Makor Issues & Rights, Ltd., No. 06-484, 2007 U.S. LEXIS 8270 (June 21, 2007), resolving divisions among the various federal circuit courts of appeals over the threshold for pleading the intent required to state a securities fraud claim under the Private Securities Litigation Reform Act of 1995 (the "PSLRA"). The Court's 8-1 decision handed an important victory to defendants in private securities fraud lawsuits regarding what is required in order to satisfy the PSLRA's requirement that the pleading "state with particularity facts giving rise to a strong inference that the defendant acted with the required state of mind" (i.e., with t...
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