Amending Pleadings in Securities Fraud Litigation After Tellabs

摘要

Since the Tellabs decision, there has been considerable confusion regarding securities fraud pleading. Now, Tellabs has permeated an on-going debate: the tension between Rule 15's liberal amendment policy and the PSLRA's heightened pleading requirement. While some courts have ignored the decision as it relates to Rule 15, others have invoked it to resolve the stress between Rule 15 and the PSLRA. Yet neither the PSLRA nor Tellabs altered Rule 15. Its liberal amendment policy should remain intact. Constricting Rule 15 is contrary to its plain text and an usurpation of Congress's and the Civil Rules Advisory Committee's function. It also upsets the balance between preserving merited securities fraud claims and dismissing frivolous ones.