Acting With Scienter In Dynex

Law360, New York (July 28, 2008, 12:00 AM EDT) -- Last week, the United States Court of Appeals for the Second Circuit released its long-awaited opinion addressing the standard for pleading scienter of a corporate defendant in securities fraud actions.

The Court noted that “Congress has imposed strict requirements on securities fraud pleading.”

But it held that a securities fraud plaintiff may successfully assert a cause of action under federal securities laws against a corporation without “pleading scienter as to an expressly named officer,” if “the pleaded facts create a strong inference that someone whose intent...
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