Sunday, April 10, 2011
A Modest Proposal for Securities Fraud Pleading after Tellabs, by Geoffrey P. Miller, New York University (NYU) - School of Law, was recently posted on SSRN. Here is the abstract:
This article criticizes the Tellabs standard for scienter pleading under federal securities law on the ground that it weeds out too many non‐frivolous cases. The article proposes a procedure designed to rectify the problem. Under the tentative dismissal approach, a dismissal under Tellabs would not end the litigation if the plaintiff filed an objection to the decision. Instead, the plaintiff would be required to pay the defendant’s attorneys’ fees incurred between the judge’s ruling on the motion to dismiss and the resolution of a motion for summary judgment.
Professor Miller presented his proposal at the Institute for Law & Economic Policy (ILEP) Conference on Access to Justice held on April 8.