Litigating Financial Losses Under State Law Defenses and Issues to Consider
Author: Robin A. Henry.
Source: Volume 22, Number 05, May/June 2009 , pp.13-19(7)
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Abstract:
Recent months have witnessed a staggering loss of wealth across virtually every asset class. Not unexpectedly, litigation seeking recovery for such losses has followed and is expected to increase. While “traditional” class action claims continue to be brought under the federal securities laws, procedural and substantive impediments to such litigation may push some plaintiffs in the direction of individual (non-class) state law litigation. In fact, substantial, high-stakes cases are increasingly being pursued under state law. Theories of recovery range from breach of contract to fraud. While state law is often viewed favorably by plaintiffs and with great trepidation by defendants, both sides to state law litigation should be aware of potential defenses that can substantially alter the presumed balance of risks. This article highlights a number of such defenses.Keywords: Securities fraud litigation
Affiliations:
1: Boies, Schiller & Flexner LLP.