Tellabs V. Makor, One Year Later

Law360 (July 21, 2008, 12:00 AM EDT) -- In its decision one year ago in Tellabs Inc. v. Makor Issues & Rights, Inc., 127 S. Ct. 2499 (2007), the Supreme Court clarified the pleading standard set forth by the Private Securities Litigation Reform Act (“PSLRA”), which requires a securities fraud plaintiff to allege “facts giving rise to a strong inference” of scienter. 15 U.S.C. 78u-4(b)(1).

In an 8-1 decision written by Justice Ginsburg, the Court held that “to qualify as ‘strong’ ... an inference of scienter must be more than merely plausible or reasonable...
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