This Note surveys thirty-four district court decisions on motions to dismiss in actions brought under SEC Rule 10b-5 for losses suffered during the recent financial crisis. This Note focuses on issues of scienter and loss causation, the elements of a 10b-5 claim most likely to be affected by a market-wide downturn. In the opinions surveyed, successfully pleading scienter proved the biggest hurdle for plaintiffs in surviving a motion to dismiss, and this Note proceeds to analyze the factors that influenced whether a district court found scienter to be adequately pleaded. This Note also examines efforts by both plaintiffs and defendants to use the financial crisis of 2007-08 to support their arguments for or against dismissal, again with particular focus on scienter and loss causation.
Christopher J. Miller,
Don't Blame Me, Blame the Financial Crisis: A Survey of Dismissal Rulings in 10b-5 Suits for Subprime Securities Losses,
80 Fordham L. Rev. 273
Available at: http://ir.lawnet.fordham.edu/flr/vol80/iss1/7