Author notes obstacles may confront investors from recovering losses through class action litigation
CCH, part of Wolters Kluwer Law & Business, has published a white paper: Fraud Litigation after Dura, Stoneridge and Tellabs: Swimming Upstream? by CCH Securities Law Analyst N. Peter Rasmussen, JD. Wolters Kluwer Law & Business is a leading provider of research information and software solutions in key specialty areas for legal and business professionals ( business.cch.com).
Rasmussen notes that investors may attempt to recover their losses from the tumbling stock market through class action litigation, but that “significant obstacles” now stand in their way.
Rasmussen examines three issues in detail: establishing fraudulent intent (scienter); pleading loss causation, especially in light of the recent Supreme Court Dura decision; and collectibility, where the Supreme Court “significantly narrowed the scope of actions against third-party defendants” in Stoneridge Investment Partners, LLC v. Scientific-Atlanta, Inc.
About the Author
N. Peter Rasmussen is a principal contributor to the industry-standard publication, CCH Federal Securities Law Reporter and is also co-author of several books on federal securities law, including: Responsibilities of Corporate Officers and Directors under Federal Securities Law, Guide to Internal Controls and Guide to Section 16: Insider Reporting and Short-Swing Trading Liability. In addition, he contributes regularly to the popular blog, Jim Hamilton’s World of Securities Regulation, at http://jimhamiltonblog.blogspot.com/.
About Wolters Kluwer Law & Business
Wolters Kluwer Law & Business is a leading provider of research products and software solutions in key specialty areas for legal and business professionals, as well as casebooks and study aids for law students. Its major product lines include
Kluwer Law International and
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