What Ashcroft v. Iqbal Means for Securities Pleading Standards
January 24, 2011
Nicholas G. Sladic, Carla R. Walworth and Mor Wetzler
In Ashcroft v. Iqbal, the Supreme Court clarified that plaintiffs must plead a "plausible" claim to survive a motion to dismiss under Federal Rule of Civil Procedure 8. But how does the Iqbal Rule 8 "plausibility" standard impact securities cases that also are subject to other pleading standards under Rule 9 and the Private Securities Litigation Reform Act (SPLRA)? Although Iqbal may be a latecomer to the securities pleading standards, it nonetheless is the governing pleading standard for key elements of securities claims.