LAW 633 Lecture Notes - Lecture 61: Private Securities Litigation Reform Act, Securities Fraud, Scienter
31 May 2020
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Forward looking statements that are identified as such and accompanied by meaningful cautionary statements are not actionable: (2) false and misleading statements, pslra - exchange act 21d(b)(2) - Complaint that alleges statements that omit material information must specify which statements were misleading and why: (3) scienter, pslra - exchange act 21d(b)(2) - plaintiff must, for every false or misleading statement, State with particularity facts giving rise to a strong inference that the defendant acted with the required state of mind: pslra - exchange act 21d(g)(10) - Knowing defendants are subject to joint and several liability; unknowing defendants (presumably those who were only reckless) are subject to proportionate liability: (5) causation, pslra - exchange act 21d(b)(4) - Procedural requirements: when, sol, 5yrs (fraudulent act, 2yrs (discovery, where, federal court, who, plaintiffs, actual purchaser or seller (act/omission, adequate representative (pslra, defendants, primary violator, sec can bring case against secondary.
