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Pleading Standard for Securities Fraud Complaints

In Tellabs v. Makor Issues & Rights Ltd. (June 21, 2007), the U.S. Supreme Court offered clarity on the requirement in the Private Securities Litigation Reform Act of 1995 (the 'PSLRA') that plaintiffs in securities fraud actions plead with particularity facts giving rise to a 'strong inference' of scienter. There has been some disagreement on the impact of the ruling.

18 minute read August 28, 2007 at 01:43 PM
By
Laurence Lese, David Kaufman, Michael Margulis And Alexander Santee
Pleading Standard for Securities Fraud Complaints

In Tellabs v. Makor Issues & Rights Ltd. (June 21, 2007), the U.S. Supreme Court offered clarity on the requirement in the Private Securities Litigation Reform Act of 1995 (the 'PSLRA') that plaintiffs in securities fraud actions plead with particularity facts giving rise to a 'strong inference' of scienter.

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