Handing technology companies and others a huge victory in their running battle with plaintiffs attorneys, the Ninth Circuit U.S. Court of Appeals on Friday made it much more difficult for disgruntled shareholders to sue corporations when their stock drops.

The divided court ruled that in order to sue for stock fraud, plaintiffs must show that corporate officers were “deliberately reckless” in making optimistic financial forecasts that turned out to be severely wrong. The opinion Friday was the most defense-friendly interpretation yet of the 1995 Private Securities Litigation Reform Act.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Advance® Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]