28 Cited authorities

Rothman v. Gregor
220 F.3d 81 (2d Cir. 2000) Cited 1,381 times 1 Legal Analyses
Holding that "the date of the filing of the motion to amend constitutes the date the action was commenced for statute of limitations purposes" when "the plaintiff seeks to add a new defendant" (quoting Nw. Nat’l Ins. Co. v. Alberts , 769 F. Supp. 498, 510 (S.D.N.Y.1991) )
Lentell v. Merrill Lynch Co., Inc.
396 F.3d 161 (2d Cir. 2005) Cited 1,028 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"
Acito v. Imcera Group, Inc.
47 F.3d 47 (2d Cir. 1995) Cited 1,154 times 1 Legal Analyses
Holding that selling stock, by itself, insufficient to plead scienter, absent allegations that "stock sales were 'unusual'"
PR Diamonds, Inc. v. Chandler
364 F.3d 671 (6th Cir. 2004) Cited 364 times
Holding that the defendants' access to financial reports and control over public earnings statements were insufficient to support a finding of scienter absent more particular facts
In re McKesson HBOC, Inc.
126 F. Supp. 2d 1248 (N.D. Cal. 2000) Cited 188 times 1 Legal Analyses
Holding allegations of revenue inflation exceeding 25% in some quarters and details of "numerous individual transactions during the class period, involving a variety of customers around the country and [defendant's officials], revenue from which was recognized and subsequently reversed," were sufficient to plead "improper recognition was so widespread at [defendant] that senior management must have known of the practice" and to establish "powerful circumstantial evidence of scienter"
In re Microstrategy, Inc.
115 F. Supp. 2d 620 (E.D. Va. 2000) Cited 177 times
Holding that a strong inference of recklessness or knowledge could be drawn when, inter alia, the accounting principles at issue were "not complex" and defendants reported revenue on unexecuted contracts
In re Scottish re Group Securities Litigation
524 F. Supp. 2d 370 (S.D.N.Y. 2007) Cited 143 times 1 Legal Analyses
Holding that “plaintiffs' factual allegations, accepted as true, suggest that the Company recklessly or intentionally misled investors as to the state of its internal controls”
In re Take-Two Interactive Securities Litigation
551 F. Supp. 2d 247 (S.D.N.Y. 2008) Cited 138 times
Holding that the disclosure of an SEC investigation was a partial corrective disclosure when it was followed by a corporate officer's plea of guilty to charges of backdating options
In re Intelligroup Securities Litigation
527 F. Supp. 2d 262 (D.N.J. 2007) Cited 96 times
Holding that “a securities plaintiff need not plead facts indicating that disclosure of the alleged fraud was the sole reason for the investment's decline in value”
In re Oxford Health Plans, Inc.
51 F. Supp. 2d 290 (S.D.N.Y. 1999) Cited 101 times
Holding that "generalized economic interests" such as "receipt of compensation and the maintenance of a profitable professional business relationship" does not constitute a sufficient motive for purposes of pleading scienter

Varghese et al v. China Shenghuo Pharmaceutical Holdings, Incet al

28 Cited authorities

Holding that "the date of the filing of the motion to amend constitutes the date the action was commenced for statute of limitations purposes" when "the plaintiff seeks to add a new defendant" (quoting Nw. Nat’l Ins. Co. v. Alberts , 769 F. Supp. 498, 510 (S.D.N.Y.1991) )

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 selling stock, by itself, insufficient to plead scienter, absent allegations that "stock sales were 'unusual'"

Holding that the defendants' access to financial reports and control over public earnings statements were insufficient to support a finding of scienter absent more particular facts

Holding that a strong inference of recklessness or knowledge could be drawn when, inter alia, the accounting principles at issue were "not complex" and defendants reported revenue on unexecuted contracts

Holding that “plaintiffs' factual allegations, accepted as true, suggest that the Company recklessly or intentionally misled investors as to the state of its internal controls”

Holding that the disclosure of an SEC investigation was a partial corrective disclosure when it was followed by a corporate officer's plea of guilty to charges of backdating options

Holding that “a securities plaintiff need not plead facts indicating that disclosure of the alleged fraud was the sole reason for the investment's decline in value”

Holding that "generalized economic interests" such as "receipt of compensation and the maintenance of a profitable professional business relationship" does not constitute a sufficient motive for purposes of pleading scienter