Ernst Ernst v. Hochfelder
425 U.S. 185 (1976) Cited 3,485 times 39 Legal AnalysesHolding that Section 9(f) “contains a state-of-mind condition requiring something more than negligence”
Novak v. Kasaks
216 F.3d 300 (2d Cir. 2000) Cited 1,597 times 9 Legal AnalysesHolding 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
Kalnit v. Eichler
264 F.3d 131 (2d Cir. 2001) Cited 844 times 1 Legal AnalysesHolding that where a complaint “does not present facts indicating a clear duty to disclose” it does not establish “ strong evidence of conscious misbehavior or recklessness”
San Leandro Emergen. Med. Plan v. Philip Morris
75 F.3d 801 (2d Cir. 1996) Cited 717 times 1 Legal AnalysesHolding that a company's statements that it was "optimistic" about its earnings and "should deliver income growth consistent with its historically superior performance" was non-actionable "puffery"
Chill v. General Electric Company
101 F.3d 263 (2d Cir. 1996) Cited 650 times 2 Legal AnalysesHolding that general motives that can "be imputed to any publicly-owned, for-profit endeavor, [are] not sufficiently concrete for purposes of inferring scienter"
Teams. Local 445 v. Dynex Cap
531 F.3d 190 (2d Cir. 2008) Cited 447 times 5 Legal AnalysesHolding 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
Freudenberg v. E*TRADE Financial Corp.
712 F. Supp. 2d 171 (S.D.N.Y. 2010) Cited 136 times 3 Legal AnalysesHolding that “[t]rading plans are not a cognizable defense to scienter allegations on a motion to dismiss where, as here, they were adopted during the Class Period”
Special Situations Fund III QP, L.P. v. Deloitte Touche Tohmatsu CPA, Ltd.
33 F. Supp. 3d 401 (S.D.N.Y. 2014) Cited 78 timesAcknowledging split among district courts
In re Van Der Moolen Holding N.V. Securities Litigation
405 F. Supp. 2d 388 (S.D.N.Y. 2005) Cited 91 times 2 Legal AnalysesHolding that statements which "put the sources of [the defendant's] revenue at issue" gave rise to Section 10(b) liability because the company failed to disclose the improper conduct that generated that revenue
In re Universal, S.A. Sec. Litig.
381 F. Supp. 2d 158 (S.D.N.Y. 2003) Cited 92 times 1 Legal AnalysesHolding that statements that a company was "financially solid" were actionable where defendants did not have a reasonable basis for them
Rule 9 - Pleading Special Matters
Fed. R. Civ. P. 9 Cited 38,931 times 316 Legal AnalysesPermitting "[m]alice, intent, knowledge, and other conditions of a person's mind [to] be alleged generally"