Pleading Standards

News & Analysis as of

Dart Cherokee: Shifting The Burden To Plaintiff in Federal Diversity Cases

Under Dart, a Plaintiff contesting that the jurisdictional threshold has not been met must now come forward with evidence that establishes the jurisdictional amount in controversy is not present. We’ve all seen this...more

The Devil’s in the Details: Court Dismisses “Made in the U.S.A.” Fraud Claims against Heinz Because Plaintiff Failed to Allege...

On April 22, 2016, in Alaei v. Kraft Heinz Food Co. (“Heinz”), No. 3:15-cv-02961, Southern District of California Judge Michael M. Anello granted defendant Heinz’s motion to dismiss without prejudice plaintiff Suzanne Alaei’s...more

Second Circuit Finds FCA Claims about Night-Vision Goggles Lack Sufficient Particularity

On Wednesday, May 25, 2016, the Second Circuit affirmed the district court’s decision to dismiss FCA claims alleging that defendants supplied $1.5 billion worth of deficient night-vision goggles to the U.S. military. United...more

Inside the Courts: An Update From Skadden Securities Litigators - May 2016 / Volume 8 / Issue 2

We are pleased to present Inside the Courts (Volume 8, Issue 2), Skadden’s securities litigation newsletter. This quarter’s issue includes summaries and associated court opinions of selected cases principally decided between...more

"Recent Delaware Cases Clarify Existing Limits and Adopt Novel Condition in Books-and-Records Demands"

Recent Delaware cases have helped clarify the limits of what the Court of Chancery will consider in a books-and-records demand under 8 Del. C. § 220, and one case has adopted a novel condition that defendants may seek to...more

"Delaware Supreme Court Enhances Protections for Controlling Stockholder Buyouts"

In November 2015, the Delaware Supreme Court bolstered the protection afforded to majority or controlling stockholders seeking to buy out the minority, provided that the transaction is structured in accordance with the...more

"Delaware Supreme Court Provides Guidance on Aiding-and-Abetting Liability for Financial Advisors"

On November 30, 2015, the Delaware Supreme Court issued a much-anticipated opinion in RBC Capital Markets, LLC v. Jervis, No. 140, 2015, 129 A.3d 816 (Del. 2015). The Supreme Court unanimously affirmed the Court of Chancery’s...more

High Court Underscores Injury Requirement for Statutory Class Actions

In a critical ruling for businesses concerned by the threat of growing class-action litigation, the Supreme Court decided on May 16, 2016 that plaintiffs must allege a concrete injury-in-fact to maintain statutory class...more

Motion to Dismiss Granted: What Are The Facts?

Order Granting Motion to Dismiss, Bluestone Innovations LLC v. Bulbrite Industries, Inc., Case No. 15-cv-5478 (Judge Phyllis Hamilton) - Before the recent amendment to the Federal Rules abolishing form complaints, it was...more

District Court Applies Dudenhoeffer “More Harm Than Good” Standard to Closely-Held Corporation

A federal district court in Mississippi ruled for the first time that the “more harm than good” pleading standard established by the Supreme Court in Fifth Third Bancorp v. Dudenhoeffer, 134 S. Ct. 2459 (2014), applied to...more

MoFo IP Newsletter - April 2016

The 2015 Changes to the Federal Rules Matter for Your Patent Case and Tech Business: Getting in the Courthouse Door Just Got Tougher - It used to be that a complaint for patent infringement would survive a motion to...more

Court Silences Sound Spark Studios’ Trademark Claims

In the summer of 2012, Jeremy Southgate applied with the United States Patent and Trademark Office to register a design mark for “Sound Spark Studios.” A little over a year-and-a-half later, Southgate formed Sound Spark...more

New Jersey Appellate Division Reverses Class Certification in TGI Friday’s Consumer Fraud Class Action

Action Item: The Superior Court of New Jersey - Appellate Division reversed a trial court’s class certification decision in a consumer class action arising from whether TGI Friday’s decision to not post drink prices on its...more

Fifth Circuit Provides Guidance on Who Has Standing to Pursue an FCA Retaliation Claim

In United States ex rel. Bias v. Tangipahoa Parish School Bd., — F.3d —-, 2016 WL 906227 (5th Cir. 2016), the Fifth Circuit provided guidance on the scope of individuals with standing to bring an FCA retaliation claim under...more

Ninth Circuit Revives Chobani Yogurt Action, But Puts Claims on Ice and Leaves Questions Unanswered

There has been much recent discussion of the primary jurisdiction doctrine, as well as stay motions based on the doctrine, related to FDA’s review of its evaporated cane juice (ECJ) draft guidance. Now, in its recent...more

The Uncertainty of Remand in Texas

The United States District Courts in Texas continue to issue conflicting opinions regarding the analysis to be used in determining whether a state court petition contains sufficient allegations against a nondiverse defendant...more

SCOTUS v. the Ninth Circuit on Failure to Enforce ERISA Stock-Drop Pleading Standard

In a terse per curiam opinion, the U.S. Supreme Court in Amgen Inc. v. Harris, No. 15-278 (U.S. Jan. 25, 2016), made clear that it expects lower courts to faithfully apply the pleading requirements for “stock-drop” cases...more

U.S. Supreme Court Clarifies Pleading Standard for Cases Involving Retirement Plan Investments in Employer Stock

The U.S. Supreme Court's recent decision in Amgen, Inc. v. Harris makes clear that the Court's heightened pleading standard applies to claims that a fiduciary of a retirement plan that has investments in employer stock should...more

Fifth Circuit upholds dismissal of securities fraud cases for failure to allege scienter

The heightened pleading requirements of the Private Litigation Securities Reform Act (PSLRA) remain strong in the 5th Circuit. On January 13, 2016, the 5th Circuit in Local 731 I.B. of T. Excavators and Pavers Pension Trust...more

New York Federal Court Judge Expresses Dismay Over NYC Human Rights Law Claim Legal Standard

Sometimes a judge says what many of us are already thinking. In Rivera v. Crowell & Moring L.L.P., Katherine B. Forrest was that judge....more

The First Circuit Agrees that Non-Cash Reverse Payments Are Subject to Antitrust Scrutiny. Does the Loestrin Decision Point to...

Recently, the First Circuit became the second federal appellate court interpreting the Supreme Court's landmark decision in FTC v. Actavis, Inc. to hold that non-cash "reverse payments" between pioneer and generic...more

A Brand Must Allege Facts to Survive a Motion to Dismiss Induced Infringement Claims - Otsuka Pharmaceutical Co., Ltd. v. Zydus...

Addressing the pleading standard for induced infringement, the U.S. District Court for the District of New Jersey dismissed Otsuka Pharmaceutical’s claims finding that a formulaic recitation of the legal standard without...more

Supreme Court Provides Additional Clarity on Pleading Requirements for ERISA Stock Drop Cases

The Supreme Court has provided additional clarity on the Fifth Third Bancorp v. Dudenhoeffer decision. In Dudenhoeffer, the Supreme Court held that a fiduciary decision to invest in employer stock is not deemed to be...more

Supreme Court Emphasizes Heightened Pleading Standard for Stock Drop Cases

On January 25, 2016, the Supreme Court of the United States issued a per curiam opinion in Amgen Inc. v. Harris, holding that the Amgen, Inc. employees who filed suit after the value of the employer stock in which they had...more

Ontario Superior Court Decision Confirms That “Public Correction” Requirement is a Temporal Marker

Under the Ontario Securities Act (“OSA”), a statutory right of action exists for secondary market misrepresentation for any person who acquires or disposes of an issuer’s securities within the relevant time period. An action...more

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