Ninth Circuit Strengthens Pleading Standard in Section 11 Claims: In re Century Aluminum Co. Securities Litigation
By SECURITIES LITIGATION AND ENFORCEMENT PRACTICE
In its recent opinion, In re Century Aluminum Co. Securities Litigation, the Ninth Circuit provided support for an increasingly vigorous application of the Twombly/Iqbal pleading standard. The Ninth Circuit's application of the Twombly/Iqbal standard to the tracing element of "aftermarket" purchasers' Section 11 claim marks the first time a circuit court has applied the Twombly/Iqbal standard to the tracing element, significantly heightening the level of factual specificity required in aftermarket purchasers' claims. The decision indicates that courts are increasingly willing to dismiss claims that require them to draw unreasonable inferences or accept speculative conclusions from allegations in a complaint.