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Joseph M. McLaughlin, a partner at Simpson Thacher & Bartlett, writes that in many cases, the difference between whether a reasonable person could, without regard to alternative innocent inferences, draw an inference of scienter from conduct (the Seventh Circuit's standard), and whether the same inference "would convince a reasonable person" (the Tenth Circuit's standard) or is the "most plausible of competing inferences" (the predominant standard) will determine whether the PSLRA's goal is achieved.
February 08, 2007 at 12:00 AM
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