• Pleading Requirements in Antifraud Securities Lawsuits Clarified as Requiring "Cogent" and "Compelling" Inference of Scienter
  • July 9, 2007 | Author: Marc D. Powers
  • Law Firm: Baker & Hostetler LLP - New York Office
  • The United States Supreme Court issued an important opinion on June 21, 2007, that will likely make antifraud securities lawsuits more difficult to pursue, helping to better protect would-be defendents from frivolous and abusive lawsuits. This case, Tellabs, Inc. v. Makor Issues & Rights, Ltd., decided on June 21, 2007, resolved a split among Courts of Appeal as to how to impose the heightened pleading standard set forth in the Private Securities Litigation Reform Act of 1995 (PSLRA) in antifraud cases.