The Problem With 'Summary Scienter Analysis'

Law360, New York (August 27, 2013, 1:48 PM EDT) -- The Sixth Circuit’s erroneous interpretation of the scienter component of the Supreme Court’s decision in Matrixx Initiatives Inc. v. Siracusano, 131 S. Ct. 1309 (2011), is one of the biggest threats to the protections of the Private Securities Litigation Reform Act.

The resulting flawed analysis — which I call “summary scienter analysis” — appears to be a battleground issue for plaintiffs’ securities litigation attorneys. Their advocacy of summary scienter analysis in In re VeriFone Holdings Inc. Sec. Litig., 704 F.3d 694 (9th Cir. 2012), while technically...
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