February 4, 2005

What Is Sufficient Notice?

The PSLRA states that securities class action plaintiffs, within 20 days of filing a complaint, "shall cause to be published, in a widely circulated national business-oriented publication or wire service, a notice advising members of the purported plaintiff class." Although the standard practice is for the notice to be put out on a wire service, some plaintiffs/counsel have chosen to publish their notice in the print edition of a single publication (with the express intention, it has been argued, of limiting the number of lead plaintiff candidates).

A minor court split has developed over whether publishing notice in the print edition of a single publication is sufficient. Last year, a D. of Md. court found that the publication of a notice in the New York Times did not meet the PSLRA's requirements. A recent decision from the E.D. of Pa., however, has held that the publication of a notice in the Investor's Business Daily was sufficient.

Securities Litigation Watch has posted extensively on the subject and the Legal Intelligencer has an article on the E.D. of Pa. decision (which also found that the notice does not need to contain an extensive description of the case).

Posted by Lyle Roberts at February 4, 2005 4:56 PM | TrackBack
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