The use of confidential witnesses to support securities fraud allegations can be controversial, especially when the defense wants to test the accuracy of the statements attributed to these individuals. The Recorder has an article (via law. com – free regist. req’d) discussing two recent cases in the N.D. of Cal. where the handling of confidential witnesses has led to contempt and sanction motions.
Quote of note: “The plaintiff view is, ‘My god, if we were to tell who they were, they’d sleep with the fishes.'”
The 10b-5 Daily 