Supreme Court To Rule On Securities Fraud Proof

Law360, New York (January 8, 2007, 12:00 AM EST) -- In what could be the biggest decision in securities law in a decade, the U.S. Supreme Court has announced it will decide the standard of proof necessary for shareholder class actions to proceed to trial.

After 12 years of uncertainty, the court will finally settle the hotly debated question: how strong does a “strong inference” have to be?

The test case involves a long-running dispute between fiber-optics equipment manufacturer Tellabs Inc. and shareholders that claim the company illegally inflated its stock price in 2001.

Tellabs’ petition...
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