• Third Circuit Reiterates Standards to Evaluate the Use of Confidential Informants Post-Tellabs; Court Finds Motive and Opportunity No Longer Sufficient in Alleging Scienter
  • June 23, 2009 | Authors: Alan R. Friedman; Arthur H. Aufses; Stephen M. Sinaiko
  • Law Firm: Kramer Levin Naftalis & Frankel LLP - New York Office
  • The United States Court of Appeals for the Third Circuit recently held, in Institutional Investors Group v. Avaya, Inc., that the Supreme Court's decision in Tellabs, Inc. v.Makor Issues & Rights, Ltd. did not change existing law on the use of confidential witnesses to meet the pleading requirements of the Private Securities Litigation Reform Act ("PSLRA").