Tag Archives: Scienter

Judge Koeltl on How to Swat Away a Securities Fraud Claim

In Schwab v. E*TRADE, Judge Koeltl sent packing a proposed class action plaintiff who was sure E*TRADE misrepresented how they processed his stock trades, but failed to give the detail necessary to make his point. Brokers like E*TRADE are paid┬ácommissions by their customers, and also are paid rebates by the market makers and exchanges that … Continue Reading

Judge Berman on Pleading Securities Fraud

Judge Berman’s cogent opinion in Cayvest Global Mandate Inc., v. Lewis Asset Management Corp (PDF),10 Civ. 695 (S.D.N.Y.) demonstrates the high hurdles a plaintiff faces in making out a securities fraud claim under the Private Securities Litigation Reform Act of 1995 (PSLRA). Plaintiff Cayvest invested $1.9 million in the Defendants’ fund.  Cayvest was told by … Continue Reading