OUT ON A LIMB: SUPPORT FOR A LIMITED VERSION OF COLLECTIVE SCIENTER

The company did not know of the safety problems when it first released the product. Since the safety problems have arisen, the company's stock price has dropped significantly. When a company's marquee product is experiencing serious mechanical problems, it would be absurd for corporate off...

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Bibliographic Details
Published in:St. John's law review 2015-07, Vol.89 (2/3), p.939
Main Author: McCabe, Matt
Format: Article
Language:English
Subjects:
Congressional investigations
Corporate liability
Defects
Federal court decisions
Fraud
Jurisprudence
Litigation
Securities industry
Stock exchanges
Online Access:Get full text
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Summary:The company did not know of the safety problems when it first released the product. Since the safety problems have arisen, the company's stock price has dropped significantly. When a company's marquee product is experiencing serious mechanical problems, it would be absurd for corporate officers of the company not to be aware of it. [...]plaintiffs would be able to successfully plead corporate liability through the absurdity analysis of collective scienter.
ISSN:0036-2905
2168-8796