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Joshua S. Sohn, a partner at DLA Piper, writes that, although the intention of Congress when it passed the PSLRA was to empower district court judges to protect defendants from frivolous, implausible litigation, the prevailing application of §§11 and 12(a)(2) typically allows such litigation to proceed past motions to dismiss and into discovery. District courts, however, can demand more from plaintiffs in §§11 and 12(a)(2) cases; they can insist that their complaints set forth a plausible theory, one that makes sense and alleges that the non-issuer defendants acted wrongfully.
August 25, 2008 at 12:00 AM
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