In 1995, public companies and their directors and officers received one of the greatest statutory gifts in the history of American corporate law: the Private Securities Litigation Reform Act. The Reform Act established heightened standards for pleading falsity and scienter, among other protections, to allow for dismissal before discovery in a fair percentage of cases.
Falsity Analysis
Falsity is Fundamental: The Case for Emphasizing Arguments against Falsity
In defending a securities class action, a motion to dismiss is almost automatic, and in virtually all cases, it makes good strategic sense. In most cases, there are only four main arguments:
- The complaint hasn’t pleaded a false or misleading statement
- The challenged statements are protected by the Safe Harbor for forward-looking statements
- The
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