6th Circ. Corporate Scienter Test Leaves Cos. Vulnerable

Law360, New York (October 15, 2014, 8:22 PM EDT) -- The Sixth Circuit recently tried to strike a middle ground between divergent opinions around the pleading standards for corporate scienter, but defense attorneys say the test it adopted leaves companies wide open to claims they knew about wrongdoing simply because someone along the chain of command did.

On Friday, the appellate court issued an opinion in a securities fraud class action accusing health care provider Omnicare Inc. of misleading investors about its compliance with federal Medicare and Medicaid billing rules. But while the three-judge panel upheld a lower court's dismissal of the claim, it also used the opportunity to put forth...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.

  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!


Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!