ADVERTISEMENT



Google       

Bookmark Follow Me Email to a friend

Appellate Law

: Appellate Law and Practice

CA1: what is enough of a risk under the PSLRA to show scienter

By S. COTUS (index)

New Jersey Carpenter v. Biogen Idec Inc., No. 07-2626 affirms the dismissal of a Private Securities Litigation Reform Act of 1995 ("PSLRA"), Pub. L. No. 104-67, 109 Stat. 737 case.  The underlying issue involves a drug company with a drug that did some bad things, and when voluntarily withdrawn the price of the stock went down.  The plaintiffs allege that the various insiders traded stock based on their knowledge of the drug and made false statements about the drug and the company.  So, the question comes down to one of whether the plaintiffs were plea scienter with enough particularity. 

The first says that knowledge of five adverse events doesn?t create the kind of knowledge necessary to know the drug is bad.  Essentially, the plaintiffs didn?t claim that the defendants knew enough of a significant risk.  The Court also dismisses a similar theory regarding a different period of time that insiders knew about these problems.

Full post as published by Appellate Law and Practice on August 07, 2008 (boomark / email).

Related Law Blog Posts
Search Blog Directory:

Search Blog Directory:

Related Law Questions
Lawsuits and Settlements


















US Law
#1 Online Legal Resource









Click here






Your Blog Subscriptions
Subscribe to blogs

10,000+ Law Job Listings
Lawyer . Police . Paralegal . Etc
Earn a law-related degree
Are you the author of this blog? Adding USLaw.com to your Blogroll increases relevance. You qualify to display a USLaw Network badge.
Suggest changes to this blog's description or nominate another for inclusion. Register for updates.


Practice Area
Zip Code:

Contact a Lawyer Now!











Click here
0.2669 secs