A plaintiff seeking to use allegations of insider trading as support for a strong inference of scienter as required by the Private Securities Litigation Reform Act of 1995 may do so without pleading facts showing the trader's typical trading practices prior to the fraud, if the totality of the allegations demonstrate that the later trading was unusual or suspicious.

Contributed in 2008 by David Gold
You've come to a rule . Check out the authorities below. When you find one you like, add it to your SpinDoc. more...
Please sign in or sign up to see the authorities.
Contribution Suggestions
vouch for authority for rule...
For purposes of a Rule 10b-5 claim, a fact is material if, had it been disclosed truthfully, it would have significantly altered the total mix of...
vouch for authority for rule...
The Court of Appeals reviews de novo a district court's determination of whether a complaint satisfies the pleading standards of the Private...
complete authority for rule...
In general, the timing of trades by an insider is not unusual or suspicious such as to support a strong inference of scienter in a Rule 10b-5...