The Fact Pattern Behind The Boeing Class Action Grounding

Law360, New York (April 2, 2013, 12:02 PM EDT) -- The Seventh Circuit several years ago questioned its ability to rely on confidential witness allegations in securities class actions governed by the Private Securities Litigation Reform Act. In the often cited Higginbotham v. Baxter Int’l Inc., 495 F.3d 753, 756-57 (7th Cir. 2007), the court said: “It is hard to see how information from anonymous sources could be deemed ‘compelling’ or how we could take account of plausible opposing inferences. Perhaps these confidential sources have axes to grind. Perhaps they are lying. Perhaps they don’t even...
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