Miscellaneous

S.D.N.Y. Raises Interesting Question Re Scope of Tellabs

By A. Benjamin Spencer

In Tellabs, the Supreme Court determined that to plead a ?strong inference of scienter? in the context of the PSLRA, a complaint must allege facts that give rise to an inference of scienter at least as strong as any competing inference. It is unclear whether district courts must now find that the inference of scienter raised in actions not governed by the PSLRA, but governed by Rule 9(b), be at least as compelling as any other inference. I need not reach this thorny (albeit interesting) issue, however, because I find that even under this heightened standard, the SEC has pled scienter.

Full post as published by Federal Civil Practice Bulletin on December 28, 2007 (boomark / email).