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O’Melveny’s Pao, Teti Co-Author Article on Scienter Pleadings in Securities Litigation

May 20, 2014

O’Melveny & Myers counsel William Pao and associate Jordan Teti co-authored an article for the Michigan State Journal of Business & Securities Law’s Fall 2014 issue, titled “Assembling the Pieces of the Scienter Puzzle: A New Approach to a Holistic Review of Scienter Pleading under Tellabs and the PSLRA.”  The piece focuses on scienter under the Private Securities Litigation Reform Act (PSLRA), which is an analysis that courts apply to assess the merits of a federal securities complaint.  The authors discuss the origins of the PSLRA and analyze specific cases involving scienter and current scienter review methods.  The authors propose that courts should conduct a “holistic” review and test the individual pieces as if they are parts of a puzzle. “In a ‘holistic’ review, the court understands the content of each piece by evaluating its probative value; only by knowing what is on each piece can the court begin to put them together,” the authors write.

Pao is a member of O’Melveny’s Securities Litigation Practice, and resides in the Firm’s Los Angeles office. Teti is a member of the O’Melveny’s Litigation Department, and also resides in the Firm’s Los Angeles office.