Ninth Circuit Takes Restrictive View of Collective Scienter Theory

The United States Court of Appeals for the Ninth Circuit in the Invision Technologies, Inc., Securities Litigation matter determined that the plaintiff class had failed to adequately allege scienter and refused under the facts of the case to apply the doctrine of “collective scienter.” The litigation arose in connection with a proposed merger between Invision […]

2nd Circuit Holds No Heightened Evidentiary Standard in Class Action Alleging Fraud on the Market

In a class action suit the United States Court of Appeals for the Second Circuit held that the district court had not erred in certifying the class in the Section 10(b), Rule 10b-5 securities fraud action. The complaint alleges that Citigroup defendants, Salomon Smith Barney, and Solomon’s research analyst, Jack Grubman, defrauded investors in Metromedia […]