Motions to Dismiss in Securities Actions - Best Practices and What Attorneys, Clients and Insurers Should Know

In 1995, Congress enacted the Private Securities Litigation Reform Act ("PSLRA") in an effort to reform securities litigation, including to deter and regulate meritless or unnecessary securities claims. Despite this regulatory effort, the overall number of securities filings remains high. Motions to dismiss are accordingly used very commonly in an attempt to reduce defense costs and achieve an early resolution of such claims. Indeed, motions to dismiss are filed in almost all securities cases, with an approximately 50% success rate. 

Given the large percentage of cases resolved through motions to dismiss, securities litigators must understand the intricacies of and unique standards for motions to dismiss in securities cases, including the Supreme Court's decision in Tellabs, the pleading standards under the PSLRA (including the standard for alleging scienter) the more than 70 defenses that can be raised in a motion to dismiss, and whether a motion to dismiss triggers a stay of discovery. This program will cover all of the above and more. The presenters will provide guidance, not only on the procedural and technical processes for filing motions to dismiss but also on strategic considerations and tips for doing so. They will discuss real-life examples of successful motions and ways to increase the likelihood of success. Together the panelists have a huge amount of experience in securities litigation and the resulting recommendations for the audience on motion-to-dismiss techniques will be invaluable.    

This program will benefit outside attorneys involved in securities litigation, D&O insurers as well as representatives from companies who face securities litigation risks, including in-house counsel, board members, and senior officers.

Learning Objectives: 

1. Identify the legal standard and relevant case law applicable to securities action motions to dismiss

2. Describe the impact of the PSLRA on motions to dismiss

3. Discuss the rates and likelihood of dismissal

4. Identify best practices in drafting motions to dismiss 

5. Provide real-life examples of strong motion-to-dismiss strategies, as well as weak strategies