23 Cited authorities

Tellabs v. Makor Issues Rights
551 U.S. 308 (2007) Cited 9,542 times 105 Legal Analyses
Holding that a strong inference is one that is "cogent and at least as compelling as any opposing inference"
Dura Pharmaceuticals v. Broudo
544 U.S. 336 (2005) Cited 3,630 times 67 Legal Analyses
Holding that the securities statutes have a private of action “not to provide investors with broad insurance against market losses, but to protect them against those economic losses that misrepresentations actually cause”
Securities v. Zandford
535 U.S. 813 (2002) Cited 532 times 17 Legal Analyses
Holding that the SEC may bring a public enforcement action against a broker who accepted payment for securities that he never delivered
Novak v. Kasaks
216 F.3d 300 (2d Cir. 2000) Cited 1,634 times 9 Legal Analyses
Holding section 78u-4(b) does not literally require pleading of all facts, so long as facts pleaded provide adequate basis for believing statements were false
ECA & Local 134 Ibew Joint Pension Trust v. Jp Morgan Chase Co.
553 F.3d 187 (2d Cir. 2009) Cited 949 times 2 Legal Analyses
Holding that statements that the defendant "'set the standard' for 'integrity' and that it would 'continue to reposition and strengthen [its] franchises with a focus on financial discipline'" were nonactionable puffery given their generality
Lentell v. Merrill Lynch Co., Inc.
396 F.3d 161 (2d Cir. 2005) Cited 1,020 times 20 Legal Analyses
Holding that to prove loss causation, a plaintiff must allege "that the misstatement or omission concealed something from the market that, when disclosed, negatively affected the value of the security"
Cosmas v. Hassett
886 F.2d 8 (2d Cir. 1989) Cited 863 times 1 Legal Analyses
Holding that recklessness by corporate officers had been adequately alleged where complaint contained allegations that a company had announced that its Chinese markets were an important source of revenue at the same time that the Chinese government had announced trade restrictions that were certain to curtail company sales
Teams. Local 445 v. Dynex Cap
531 F.3d 190 (2d Cir. 2008) Cited 466 times 5 Legal Analyses
Holding that plaintiffs failed to allege corporate scienter where they did not specifically identify reports or statements to which the corporate officer had access that would have contradicted the allegedly fraudulent corporate statements at issue
Chill v. General Electric Company
101 F.3d 263 (2d Cir. 1996) Cited 660 times 2 Legal Analyses
Holding that general motives that can "be imputed to any publicly-owned, for-profit endeavor, [are] not sufficiently concrete for purposes of inferring scienter"
Makor v. Tellabs
513 F.3d 702 (7th Cir. 2008) Cited 361 times 14 Legal Analyses
Holding that, while it would be better to have named sources, "the absence of proper names does not invalidate the drawing of a strong inference from [the confidential witnesses]' assertions"
Rule 8 - General Rules of Pleading
Fed. R. Civ. P. 8 Cited 163,831 times 197 Legal Analyses
Holding that "[e]very defense to a claim for relief in any pleading must be asserted in the responsive pleading. . . ."
Rule 9 - Pleading Special Matters
Fed. R. Civ. P. 9 Cited 40,114 times 335 Legal Analyses
Requiring that fraud be pleaded with particularity
Section 78u-4 - Private securities litigation
15 U.S.C. § 78u-4 Cited 7,730 times 53 Legal Analyses
Granting courts authority to permit discovery if necessary "to preserve evidence or to prevent undue prejudice to" a party
Section 78t - Liability of controlling persons and persons who aid and abet violations
15 U.S.C. § 78t Cited 4,074 times 20 Legal Analyses
Holding liable any person "who, directly or indirectly, controls any person liable under any provision of this chapter or of any rule or regulation thereunder"

Ellington Management Group, L.L.C. et al v. Ameriquest Mortgage Company et al

23 Cited authorities

Holding that a strong inference is one that is "cogent and at least as compelling as any opposing inference"

Holding that the securities statutes have a private of action “not to provide investors with broad insurance against market losses, but to protect them against those economic losses that misrepresentations actually cause”

Holding that the SEC may bring a public enforcement action against a broker who accepted payment for securities that he never delivered

Holding section 78u-4(b) does not literally require pleading of all facts, so long as facts pleaded provide adequate basis for believing statements were false

Holding that statements that the defendant "'set the standard' for 'integrity' and that it would 'continue to reposition and strengthen [its] franchises with a focus on financial discipline'" were nonactionable puffery given their generality

Holding that to prove loss causation, a plaintiff must allege "that the misstatement or omission concealed something from the market that, when disclosed, negatively affected the value of the security"

Holding that plaintiffs failed to allege corporate scienter where they did not specifically identify reports or statements to which the corporate officer had access that would have contradicted the allegedly fraudulent corporate statements at issue

Holding that general motives that can "be imputed to any publicly-owned, for-profit endeavor, [are] not sufficiently concrete for purposes of inferring scienter"

Holding that, while it would be better to have named sources, "the absence of proper names does not invalidate the drawing of a strong inference from [the confidential witnesses]' assertions"

Holding that "[e]very defense to a claim for relief in any pleading must be asserted in the responsive pleading. . . ."

Requiring that fraud be pleaded with particularity

Granting courts authority to permit discovery if necessary "to preserve evidence or to prevent undue prejudice to" a party

Holding liable any person "who, directly or indirectly, controls any person liable under any provision of this chapter or of any rule or regulation thereunder"