Law360, New York (June 05, 2009) -- As the second anniversary of the Supreme Court decision in Tellabs Inc. v. Makor Issues & Rights Ltd.[1] approaches, a critical mass of circuit court decisions has begun to suggest some trends in how Tellabs has affected plaintiffs’ use of “core operations” pleading, which claims that scienter has been alleged as to key executives because the purported fraud relates to the company’s core operations or core products.
Tellabs mandates a “holistic” and “comparative” assessment of whether a complaint pleads scienter under the Private Securities Law Reform Act (“PSLRA”).[2]...
