The Second Circuit's recent decision affirming the dismissal of a securities class action against JP Morgan Chase is getting some press attention. The New York Law Journal had two columns this week discussing the case.
In "Circuit Gives Guidance to Litigators on Securities Fraud Claims" (Feb. 23 - subscrip. req'd) and "Clarifying Pleading Requirement for Scienter, Materiality Under PSLRA" (Feb. 25 - subscrip. req'd), the authors focus on the court's application of SEC Staff Accounting Bulletin 99 as "persuasive authority" on the issue of materiality. Both columns conclude that the decision is helpful for defendants who can demonstrate that their alleged misstatements are quantitatively immaterial.Posted by Lyle Roberts at February 27, 2009 8:24 PM | TrackBack