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Raising The Bar: Supreme Court Clarifies Scienter Pleading Standards For Federal Securities Fraud Actions
June 26, 2007
Jonathan R. Tuttle, Colby A. Smith, Ada Fernandez Johnson, John B. Missing

This client memo discusses why the Supreme Court added another decision to its recent series of rulings. The Tellabs decision should make it more difficult for plaintiffs to pursue cases where the alleged fraudulent scheme is implausible, the plaintiffs’ securities bar has proven resilient and resourceful in the face of similar judicial and legislative efforts to curtail strike suits.

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