The Supreme Court on Thursday made it easier for corporate defendants to seek and win dismissal of lawsuits filed by investors alleging stock fraud or market manipulation. By an 8-1 majority, the Court raised the threshold that plaintiffs must cross in initial pleadings to show that defendants had the intention to deceive or defraud. The ruling on a crucial threshold question in securities litigation was the second win this week for defendants seeking to limit class action litigation brought by investors.
High Court Raises the Bar for Investors Alleging Securities Fraud
June 22, 2007