Securities Plaintiffs Face Tough Sledding After Tellabs

Law360, New York (June 27, 2008, 12:00 AM EDT) -- One year ago, the Supreme Court issued its long-awaited decision in Tellabs Inc. v. Makor Issues & Rights, Ltd., 127 S. Ct. 2499 (June 21, 2007), which clarified the pleading standards for scienter under the Private Securities Litigation Reform Act (“PSLRA”).

While the impact of this decision is still unclear, a recent survey of the more than 170 district and circuit court opinions issued in the 12 months after Tellabs suggests that federal courts are rigorously policing the scienter requirement in light of the Supreme Court’s...
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