Duane Morris Class Action Review - 2023 - Report - Page 306
There are several categories of decisions in 2022 that reflect significant trends in
securities class action litigation. These are discussed in more detail below and include
the following: (1) Rulings Dismissing Class Action Claims as Insufficient Under the
Private Securities Litigation Reform Act; (2) Rulings Dismissing Claims for
Extraterritoriality; (3) A Ruling Dismissing a Class Action Claim Pursuant to an FFP; (4)
Rulings Granting Class Action Certification Under the Basic Presumption; and (5)
Appellate Decisions Affirming Dismissal of a Class Action Claim.
II.
Key Rulings In Securities Fraud Class Actions
A.
Rulings Dismissing Class Action Claims As Insufficient Under The Private
Securities Litigation Reform Act
The PSLRA remains an effective defense in securities class actions. In 2022, a number
of defendants successfully argued that plaintiffs failed to satisfy the heightened pleading
standards required by the PSLRA. Section b(1) of the PSLRA requires a complaint
alleging misstatements or omissions to specify each statement alleged to have been
misleading, and indicate the reasons why the statement is misleading. 15 U.S.C. § 78u4(b)(1).
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© Duane Morris LLP 2023
Duane Morris Class Action Review – 2023
