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Closer Scrutiny Of 'Confidential Informants'

Law360 (April 6, 2009, 12:00 AM EDT) -- Given the current economic climate, many companies have found it necessary to reduce the size of their work force.

These same companies may also be experiencing a decline in their stock prices as a result of the less than favorable economic conditions. Regrettably, any significant stock price decline may lead to the filing of a securities fraud class action.

If a lawsuit is filed under these facts, it is a virtual certainty that the resulting complaint will be based in large measure on information supposedly gleaned...
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