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| 2001 News and Press Releases |
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HEADLINE ARCHIVED:
Sprint Could Benefit From Circuit Ruling; Strong Inference Decision Is Crucial In Securities Cases
By: Dan Margolies
The Kansas City Star. September 25, 2001
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Excerpt: A recent decision in a securities fraud case may be good news for Sprint Corp., which is defending several securities actions brought by disgruntled shareholders. In a case of first impression, the 10th U.S. Circuit Court of Appeals earlier this month ruled that plaintiffs in securities fraud actions must plead facts giving rise to a "strong inference" of wrongful intent. The case was brought by the city of Philadelphia's pension and retirement board, which alleged that food wholesaler Fleming Companies Inc. issued materially misleading documents to regulators and investors by omitting information about a pending lawsuit. The court's lengthy decision interprets portions of the Private Securities Litigation Reform Act of 1995, which Congress passed to curb perceived abuses in securities litigation. The legislation took direct aim at the law firm behind much of the Sprint litigation and co-lead counsel for the city of Philadelphia in the Fleming case, Milberg Weiss Bershad Hynes & Lerach.
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