Sharon Nelles and Hilary Huber Author Article in Loyola University Chicago Law JournalMay 12, 2014
In its Spring 2014 edition, the Loyola University Chicago Law Journal published an article by Mmes. Nelles and Huber titled, “Pleading Securities Fraud Claims: The Good, The Bad, and The Ugly.” In the article, Mmes. Nelles and Huber address the contention that the Private Securities Litigation Reform Act (PSLRA) and the Supreme Court cases interpreting it have created insurmountable hurdles for plaintiffs at the motion to dismiss stage. The article considers select cases that exemplify “the good, the bad, and the ugly” of securities fraud pleadings, with a focus on the “scienter” and “misstatements or omissions” elements of a securities fraud claim. The article also briefly discusses the – often problematic – use of confidential witnesses to meet the PSLRA's heightened pleading standards.