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| 2001 News and Press Releases |
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HEADLINE ARCHIVED:
A Developing Consensus For Pleading Scienter Under The Reform Act
By: John F.X. Peloso And Stuart M. Sarnoff
New York Law Journal. December 20, 2001
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Excerpt: COURTS UNIFORMLY have held that the Private Securities Litigation Reform Act of 1995 ("PSLRA" or "Reform Act") [FN1] raised the standard for pleading that defendants acted with the requisite fraudulent intent to commit securities fraud, i.e., with scienter. In our Oct. 21, 1999 New York Law Journal article, "Pleading Scienter Under the Reform Act," we addressed the background of the scienter issue and the initial rulings by the Courts of Appeal. At that time, the Second, Third, Sixth, Ninth and Eleventh Circuits had ruled on the issue, the Fourth Circuit had discussed it in dicta, and the question was pending before the First Circuit. While the First Circuit subsequently issued its decision at the end of 1999, no other Circuits weighed in on the matter until September of this year, when the Fifth and Tenth Circuits, followed by the Eighth Circuit, handed down opinions addressing scienter.
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