Eleventh Circuit's Scienter Ruling To Affect Plaintiffs

Law360, New York (October 16, 2006, 12:00 AM EDT) -- A recent appeals court decision may have plaintiffs lawyers thinking twice about the manner in which they set out to prove intent to defraud.

The U.S. Court of Appeals for the 11th Circuit recently dismissed a case against health care provider NDCHealth Corporation in a decision that is likely to have broad implications for the manner in which plaintiffs in securities class actions try to prove scienter.

The plaintiff in the case, the DeKalb County Pension Fund, had tried to prove scienter by showing that the...
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