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Federal appeals courts have split over the degree to which a securities law "safe harbor" provision involving company disclosures provides a shield from shareholder suits. The 2nd Circuit has held that companies can assert the defense at the pleadings stage of a suit -- creating a powerful weapon for defendants in terminating cases before discovery -- but the 7th Circuit has given a boost to class action plaintiffs with a ruling that declined to apply the defense at the pleadings stage.
January 07, 2005 at 12:00 AM
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The original version of this story was published on Law.Com
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