2nd Circ. Affirms High Corporate Scienter Pleading Standards
Law360 (June 25, 2020, 6:18 PM EDT) -- It is well-settled under the Private Securities Litigation Reform Act's heightened pleading standards that a securities fraud plaintiff must allege particularized facts giving rise to a strong inference of scienter. However, courts have occasionally struggled to set forth clear standards for how this burden can be met with respect to a corporation (as opposed to an individual defendant).
In a per curiam opinion issued in Jackson v. Abernathy on May 27, the U.S. Court of Appeals for the Second Circuit provided important guidance on the standards for pleading corporate scienter, holding that — in all but "exceedingly rare instances" — the plaintiff...
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