We use cookies on this site to enable your digital experience. By continuing to use this site, you are agreeing to our cookie policy. close

Supreme Court Heightens Pleading Standard

Law360 (June 21, 2007, 12:00 AM EDT) -- Securities class actions will now have to meet a heightened pleading standard, thanks to a U.S. Supreme Court decision that strengthens the requirements for proving scienter.

In an 8-1 opinion handed down in Tellabs Inc. v. Makor Issues & Rights Ltd on Thursday, the Supreme Court ruled that “an inference of scienter must be more than merely plausible or reasonable—it must be cogent and at least as compelling as any opposing inference of nonfraudulent intent."

Authored by Justice Ruth Bader Ginsburg, the opinion not only states...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.