Dismissal With Prejudice: Stopping A Securities Class Action The First Time Around

Law360, New York (June 7, 2006, 12:00 AM EDT) -- Courts typically grant plaintiffs leave to amend after dismissing a defective securities class action complaint. This means that instead of celebrating a hard-fought victory on a motion to dismiss, many defendants are left with a series of uncomfortable questions: (i) will the plaintiffs amend?; (ii) will the amended complaint survive a second motion to dismiss?; and (iii) perhaps most importantly, how much will it cost to prepare and argue yet another motion to dismiss?

A recent case against a Fortune 100 financial institution demonstrates the importance...
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