The Falsity-Scienter Inference

摘要

This column argues that, under certain circumstances in securities fraud cases, a statement's well-pleaded falsity gives rise to a strong inference that the speaker acted with scienter. Imagine that a plaintiff pleaded with particularity that this column's author had stated, "My middle name is 'Miller,'" and that this statement was false because the author's middle name is "Gerwick." This column contends that these allegations would give rise to a strong inference that this author spoke at least recklessly when misstating her middle name.