The New York Law Journal has two securities litigation columns this week.
(1) In Lower Courts Divided on Standard for Pleading Loss Causation Post-Dura (3/31/11 – subscrip. req’d), the authors discuss the split over whether loss causation is merely subject to notice pleading (FRCP 8(a)(2)) or must be plead with particularity (FRCP 9(b)). The Supreme Court, in its Dura decision, left the issue open and no subsequent judicial consensus has emerged.
(2) In Most ARS Suits Tripped Up By Difficult Pleading Hurdles (3/31/11 – subscrip. req’d), the author examines what has happened to the flurry of securities class actions that were filed in the wake of the 2008 disruption in the market for auction rate securities. Most of the cases have been dismissed for failing to adequately plead various elements of a securities fraud claim, including scienter, loss causation or reliance.