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Supremes Deliver Another Blow to Plaintiffs Securities Bar

Publication Date: 
June 21, 2007
The Wall Street Journal Law Blog
Peter Lattman

The Wall Street Journal mentions Stanford Law School Professor Joseph Grundfest in the context of the Tellabs ruling just issued by the Supreme Court of the United States, and bases its report on Scotusblog, the blog founded by Lecturer Thomas C. Goldstein, who co-teaches the Stanford Law School Supreme Court Litigation Clinic. Per the Journal's Blog report:

[...The ruling raised...] the bar on pleading standards in securities fraud lawsuits. All we know so far, thanks to Scotusblog, is that the court said that to qualify as strong, an inference of awareness of wrongdoing must be “more than merely plausible or reasonable — it must be cogent and at least as compelling as any opposing inference” of a lack of intent to defraud.

The 8-1 opinion, authored by Justice Ginsburg (pictured), is yet another loss for the plaintiffs bar at the Supreme Court and a win for defendants accused of securities fraud...

... This case was closely watched in the securities-fraud bar. When the case was argued in March, a who’s who of securities litigation showed up to watch, including Stanford Law securities guru Joe Grundfest; embattled class-action king Mel Weiss; plaintiffs’ lawyers Sal Graziano of Bernstein Litowitz and Stan Bernstein of Bernstein Liebhard; and Scott Musoff at Skadden Arps.