Tag Archives: Confidential Witnesses

Addressing the Use of Confidential Witnesses in Securities Litigation

As a result of the PSLRA’s heightened pleading standard and pre-dismissal motion discovery bar, as well as the requirements of cases such as Tellabs, plaintiffs in liability suits under the federal securities laws frequently rely on confidential witnesses. This practice has led to  the “confidential witness problem” in securities litigation. In a September 25, 2017 … Continue Reading

Guest Post: Second Circuit Revives Securities Fraud Class Action Against the Manufacturer of the Keurig Coffeemaker

One of the recurring issues with which federal district courts wrestle is the right way to assess securities complaint allegations based on confidential issues. Another recurring issue has to do with the assessment of trading in company securities by corporate insiders pursuant to Rule 10b5-1 trading plans. A recent decision by Second Circuit addressed both … Continue Reading

The Confidential Witness Problem in Securities Litigation

Largely as a result of the pre-dismissal motion discovery bar and the heighted pleading standard Congress and the courts have imposed, the plaintiffs in these cases increasingly have come to rely on the statements of confidential witnesses in attempting to plead securities fraud cases, a development that has become the target of extensive criticism.   … Continue Reading

Confidential Witness Statements Lead to Dismissal Motion Denial in Regions Financial Subprime Securities Lawsuit

In a decision that largely turned on detailed confidential witness statements, on June 7, 2011, Northern District of Alabama Judge Inge Prytz Johnson denied the motions to dismiss in the Regions Financial Corporation subprime-related securities lawsuit. This ruling is the latest of a series of decisions involving the company. The June7 ruling can be found … Continue Reading