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Second Circuit Review: The Pleading Standard for Corporate Scienter
July 23, 2008 Full PDF
Litigation partners Marty Flumenbaum and Brad Karp's "Second Circuit Review" column appeared in the July 23 issue of the New York Law Journal. The article discusses the U.S. Court of Appeals for the Second Circuit's decision in Teamsters Local 445 Freight Div. Pension Fund v. Dynex Capital Inc., in which the court clarified the requirements for pleading "corporate scienter" in connection with claims for securities fraud under the Public Securities Litigation Reform Act. The court held that under certain circumstances, it is possible to survive a motion to dismiss by pleading facts that raise the required strong inference of scienter to a corporate defendant without identifying a specifically named individual defendant. Litigation associate Patrick Somers assisted in the preparation of this column.