dont blame me, blame the financial crisis a survey of.pdf

Fordham Law R eview Volume 80 | Issue 1 Article 7 2011 Dont Blame Me, Blame the Financial Crisis: A Survey of Dismissal Rulings in 10b-5 Suits for Subprime Securities Losses Christopher J. Miller Recommended Citation Christopher J. Miller, Dont Blame Me, Blame the Financial Crisis: A Survey of Dis missal Rulings in 10b-5 Suits for Subprime Securities Losses, 80 Fordham L. Rev. 273 (2011). Available at : /flr/vol80/iss1/7 This Note is brought to you for ree and open access by FLASH: The Fordham Law Archive of Scholarship and History. It has been accepted for inclusion in Fordham Law R eview by an authorized administrator of FLASH: The Fordham Law Archive of Scholarship and History. For more information, please contact tmelnick@. “DON’T BLAME ME, BLAME THE FINANCIAL CRISIS”: A SURVEY OF DISMISSAL RULINGS IN 10b-5 SUITS FOR SUBPRIME SECURITIES LOSSES Christopher J. Miller* This Note surveys thirty-four district court decisions on motions to dismiss in actions brought under SEC Rule 10b-5 for losses suffered during the recent financial crisis. This Note focuses on issues of scienter and loss causation, the elements of a 10b-5 claim most likely to be affected by a market-wide downturn. In the opinions surveyed, successfully pleading scienter proved the biggest hurdle for plaintiffs in surviving a motion to dismiss, and this Note proceeds to analyze the factors that influenced whether a district court found scienter to be adequately pleaded. This Note also examines efforts by both plaintiffs and defendants to use the financial crisis of 2007–08 to support their arguments for or against dismissal, again with particular focus on scienter and loss