Pleading Standards

News & Analysis as of

Sixth Circuit Affirms Dismissal of Securities Class Action for Failure to Properly Plead Scienter

On March 28, the US Court of Appeals for the Sixth Circuit affirmed a lower court’s dismissal of a shareholder class action against BioMimetic Therapeutics Inc., finding that plaintiffs had failed to sufficiently allege that...more

Supreme Court To Decide CAFA Pleading Standard

On April 7th, the Supreme Court granted certiorari in Dart Cherokee Basin Operating Company, LLC v. Owens, a case originating from the Tenth Circuit. In that case, the Court will resolve a circuit split over the pleading...more

Dart Cherokee: SCOTUS to Hear Case on CAFA Pleading Requirements

The Supreme Court will now decide whether a 2006 Seventh Circuit decision on Class Action Fairness Act pleading requirements was correct. The Court granted certiorari today in a case that will resolve whether defendants...more

Florida Supreme Court Holds Insurer Must Plead and Prove Prejudice From Insured’s Failure to Attend CME

In a recent decision in State Farm Mutual Automobile Ins. Co. v. Curran, 2014 Fla. App. LEXIS 3506 (Fla. March 14, 2014) the Florida Supreme Court addressed an auto policy issued by State Farm with a condition requiring an...more

Texas Two Step: “In Connection With” At The End Of Its Tether?

The familiar “in connection with the purchase or sale” securities-litigation requirement may not be unlimited in its breadth, after all. On February 26, the US Supreme Court pulled up short defendants in litigation by...more

You Were Wrong, But Did You Know You Were Wrong? The Supreme Court To Resolve The Circuit Split On The Pleading Standard For...

Can a securities plaintiff satisfy Section 11 of the Securities Act simply by alleging that a statement of opinion was objectively false, or must the plaintiff also allege that the speaker subjectively knew the statement was...more

California's Shine the Light Law: A Heightened Pleading Requirement

In three nearly-identical unpublished opinions, the United States Court of Appeals for the Ninth Circuit affirmed the dismissal of three separate class actions brought under California's Shine the Light Law.1 The Ninth...more

Solicitor General Recognizes Conflict, but Recommends that Supreme Court Deny Review of False Claims Act Case Involving Rule 9(b)...

The United States Solicitor General has recommended that the Supreme Court deny certiorari in United States ex rel. Nathan v. Takeda Pharmaceuticals N.A. Inc., et al. (No. 12-1349), a False Claims Act (“FCA”) case involving...more

Recent Case Advances Ninth Circuit Law on Pleading Diversity of Citizenship on Information and Belief

Insurers frequently file coverage actions in federal court, and when they do, jurisdiction is often predicated on diversity. Pursuant to 28 U.S.C. § 1332(a), a federal district court has original jurisdiction of a civil...more

Lithium Ion Batteries Court Addresses Illinois Brick Exception, Finds Standing for Certain Indirect Purchasers of Component...

In In re: Lithium Ion Batteries Antitrust Litigation, 2014 U.S. Dist. LEXIS 7516 (N.D. Cal. Jan. 21, 2014) (Gonzalez Rogers, J.), the Northern District of California largely rejected a motion to dismiss an antitrust...more

Courts Remain Divided Over Pleading Requirements for Inducement

Recent cases have revealed a division of opinion over whether a patentee is required to plead that an accused indirect infringer had knowledge of the patent before being sued, or whether the filing of a patent infringement...more

Third Circuit Court Of Appeals Finds Plaintiff Failed To Meet PSLRA’s Scienter Pleading Requirement

Rahman v. Kid Brands, Inc., 2013 WL 6038246 - Shah Rahman, the plaintiff and appellant, brought a federal securities class action in March 2011 against defendant Kid Brands, Inc. and against individual defendants Bruce...more

Supreme Court to Review Sixth Circuit’s Reinstatement of ERISA “Stock-Drop” Class Action

The Supreme Court recently agreed to resolve a circuit split on the pleading requirements for claims that ERISA fiduciaries imprudently invested employee stock ownership plan (ESOP) assets in the stock of the...more

“John Doe” Saves the Day in Washington: Avoiding S.O.L. Defense by Properly Naming “Doe” Defendants

In Powers v. W.B. Mobile Servs., Inc., 311 P.3d 58, 2013 WL 5645561 (2013), Division Two of the Washington Court of Appeals held that if a plaintiff (1) names a “John Doe” defendant with “reasonable particularity,” files suit...more

First Circuit Dismisses FCA Claim For Failure To Plead Fraud With Particularity And Denies Further Amendments Of Complaint

On December 6, 2013, in U.S. ex rel. Helen Ge, M.D. v. Takeda Pharmaceutical Company Limited (No. 13-1088), the First Circuit Court of Appeals affirmed the dismissal of Dr. Helen Ge’s qui tam actions against her former...more

Legislation Targeting Non-Practicing Entities (NPEs) Passes in House by Comfortable Margin

On Thursday, December 5, 2013, the U.S. House of Representatives approved the “Innovation Act” (H.R. 3309), a bill principally aimed at curtailing certain patent infringement litigation practices of non-practicing entities...more

Federal PA Court Permits “Bad Faith Set-Up” as a Defense to Insured’s Bad Faith Claim

A Pennsylvania federal court recently allowed an insurer to plead “bad faith set-up” as a defense to, or “avoidance” of, a bad faith cause of action. The plaintiffs in Shannon v. New York Central Mutual Insurance Company who...more

The Latest In Patent Reform: The Innovation Act (H.R. 3309)

Over the past year, various lawmakers have floated a flurry of patent reform proposals aimed at curbing patent litigation abuse by so-called “patent trolls,” or non-practicing patent enforcement entities. President Obama...more

Inside The Courts - December 2013 | Volume 5 | Issue 4

In This Issue: *U.S. SUPREME COURT: - Halliburton Co. v. Erica P. John Fund, Inc., No. 13-317 (U.S. Nov. 15, 2013) Lawson v. FMR LLC, No. 12-3 (U.S. Nov. 12, 2013) - Chadbourne & Parke LLP v. Troice, No....more

Unsealed Qui Tams Show That Government Declination is Not Always the End

Mintz Levin’s most recent Qui Tam Update authored by our Health Care Enforcement Defense Practice provides focused analysis of four health care-related qui tam cases in which the government declined to intervene, including...more

The Futility of Petitioning Congress (After the Fix Is In): Stakeholders Tell Judiciary Committee What's Wrong with Goodlatte Bill...

What everybody doesn't seem to know is how to get Congress to listen to the needs of the innovation community when well-heeled sectors put their lobbying and financial support in favor of legislation purportedly aimed at...more

Patent Reform Update: Leahy Introduces Senate Bill, Goodlatte Circulates House Manager’s Amendment

Significant congressional activity took place on November 18, 2013, bringing patent reform several steps closer to enactment. While final passage remains too early to predict (and no single bill has yet been voted out of...more

PTAB = Stickler on Detailed Inter Partes Review Rules

Running a bit short on space in your IPR brief? Think you might sneak one past the Board by stretching those margins by a tenth of an inch or two? Think again. It should come as no surprise given that the inter partes review...more

Is the California Unfair Practices Act a Free Pass on Motions to Dismiss?

Probably not, but UPA claims can be tough to defeat at the motion to dismiss stage. Witness Rheumatology Diagnostics Laboratory, Inc. v. Aetna, Inc., 2013 U.S. Dist. LEXIS 151128 (N.D. Cal. Oct. 18, 2013) (Orrick, J.), where...more

Texas Courts' Rigorous Standards For Well-Pled Complaints

In Ashcroft v. Iqbal and Bell Atlantic v. Twombly, the U.S. Supreme Court changed the requirements for a well-pled complaint under Federal Rule of Civil Procedure 8. The court replaced the old “conceivable” standard in Conley...more

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