Outlook Brightens For Securities Fraud Defendants

Law360, New York (April 19, 2007, 12:00 AM EDT) -- Most securities fraud cases follow a familiar path. A company makes a disappointing announcement. Its stock price falls. Lawsuits are filed and consolidated. Lead plaintiff is appointed and selects class counsel, who files a consolidated complaint. Defendants move to dismiss. The case is stayed until the judge rules.

At this point, defendants want to deliver a quick, knockout punch. The Private Securities Litigation Reform Act of 1996 (the "Reform Act") bolstered defendants' chances to deliver that blow.

If plaintiffs remain standing following the court's ruling, however,...
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