Analyzing Post-Market Boom Jurisprudence in the Second and Ninth Circuits: Has the Pendulum Really Swung Too Far in Favor of Plaintiffs?

Authors

Daniela Nanau, Benjamin N. Cardozo School of Law

Abstract

The note argues that the Private Securities Litigation Reform Act (PSLRA) has not overly favored plaintiffs but rather corrected the imbalance caused by its initially burdensome pleading requirements. It critiques the PSLRA for potentially discouraging meritorious claims and advocates for a more balanced approach to pleading scienter in securities fraud cases. The author suggests that Congress should adopt the Second Circuit's flexible standard for assessing scienter, as it better aligns with the need to deter fraud while avoiding excessive litigation costs.

Disciplines

Jurisprudence | Law | Securities Law

Recommended Citation

Daniela Nanau, Analyzing Post-Market Boom Jurisprudence in the Second and Ninth Circuits: Has the Pendulum Really Swung Too Far in Favor of Plaintiffs?, 3 Cardozo Pub. L. Pol’y & Ethics J. 943 (2006).
Available at: https://larc.cardozo.yu.edu/cplpej/vol3/iss3/12