For the third time in the last seven months, the nation’s largest federal appellate court has reinstated a securities fraud lawsuit that a trial judge had dismissed under a 1995 statute meant to weed out costly suits.
In reviving a complaint against the corporate successors to the investment bank Schroders & Co., the San Francisco-based 9th Circuit set a relatively low bar for plaintiffs in terms of what they have to allege regarding a company’s intent to defraud investors. The court also addressed, but ultimately ducked, an issue concerning the extended statute of limitations for securities fraud actions under The Sarbanes-Oxley Act of 2002.
