A Modest Proposal for Securities Fraud Pleading after Tellabs

21 Pages Posted: 9 Apr 2011  

Geoffrey P. Miller

New York University School of Law

Date Written: April 7, 2011

Abstract

This article criticizes the Tellabs standard for scienter pleading under federal securities law on the ground that it weeds out too many non‐frivolous cases. The article proposes a procedure designed to rectify the problem. Under the tentative dismissal approach, a dismissal under Tellabs would not end the litigation if the plaintiff filed an objection to the decision. Instead, the plaintiff would be required to pay the defendant’s attorneys’ fees incurred between the judge’s ruling on the motion to dismiss and the resolution of a motion for summary judgment.

Suggested Citation

Miller, Geoffrey P., A Modest Proposal for Securities Fraud Pleading after Tellabs (April 7, 2011). NYU Law and Economics Research Paper No. 11-15. Available at SSRN: https://ssrn.com/abstract=1804915 or http://dx.doi.org/10.2139/ssrn.1804915

Geoffrey P. Miller (Contact Author)

New York University School of Law ( email )

Center for the Study of Central Banks
40 Washington Square South
New York, NY 10012-1099
United States
212-998-6329 (Phone)
212-995-4590 (Fax)

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