Friday, December 28, 2007

S.D.N.Y. Raises Interesting Question Re Scope of Tellabs

Per S.E.C. v. Collins & Aikman Corp., Slip Copy, 2007 WL 4480025 (S.D.N.Y. Dec. 21, 2007):

In Tellabs, the Supreme Court determined that to plead a “strong inference of scienter” in the context of the PSLRA, a complaint must allege facts that give rise to an inference of scienter at least as strong as any competing inference. It is unclear whether district courts must now find that the inference of scienter raised in actions not governed by the PSLRA, but governed by Rule 9(b), be at least as compelling as any other inference. I need not reach this thorny (albeit interesting) issue, however, because I find that even under this heightened standard, the SEC has pled scienter.


Post a Comment

<< Home