There is a circuit split over the standard to plead scienter in 10b-5 securities fraud litigation against corporations. NARROW PLEADING dismisses complaints for failure to plead scienter, unless the complaint names a natural person at the corporation who has scienter. But BROAD PLEADING allows a complaint to survive dismissal, even without naming any natural person … Continue reading The Epistemology of Collective Scienter
Tag: Financial Markets
This past September, the United States Court of Appeals for the Ninth Circuit held that shareholders who purchased securities in Slack’s direct listing have standing under Section 11[1] of the Securities Act of 1933 (Securities Act) to sue the company for misrepresentations in its registration statement, even if they cannot prove that their shares were … Continue reading Shareholders Get Some Slack on Section 11, Direct Listing Pleading Standard
In November 2021, the President’s Working Group on Financial Markets, in partnership with the Comptroller of the Currency and the Federal Deposit Insurance Corporation, released its long-awaited report on stablecoins attempting to outline the risks posed by these digital assets and propose next steps for financial regulators. Although its main recommendation called for new legislation … Continue reading Regulating Stablecoins as Glass-Steagall Deposits and Consequences for Money Market Funds