Don't Blame Me, Blame the Financial Crisis: A Survey of Dismissal Rulings in 10b-5 Suits for Subprime Securities Losses
2011; Fordham University School of Law; Volume: 80; Issue: 1 Linguagem: Inglês
ISSN
0015-704X
Autores Tópico(s)Securities Regulation and Market Practices
ResumoThis Note surveys thirty-four district court decisions on motions to dismiss in actions brought under SEC Rule 10b-5 for losses suffered during the recent financial crisis. This Note focuses on issues of scienter and loss causation, the elements of a 10b-5 claim most likely to be affected by a market-wide downturn. In the opinions surveyed, successfully pleading scienter proved the biggest hurdle for plaintiffs in surviving a motion to dismiss, and this Note proceeds to analyze the factors that influenced whether a district court found scienter to be adequately pleaded. This Note also examines efforts by both plaintiffs and defendants to use the financial crisis of 2007–08 to support their arguments for or against dismissal, again with particular focus on scienter and loss causation.
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