City of Philadelphia v. Fleming Companies, Inc.

How courts have described this case

Verbatim parenthetical descriptions written by other courts when citing this decision. Ranked by citation-network relevance.

• concluding that “the mere fact” that defendants “occupied senior positions in the company” was inadequate for an inference of scienter
• holding that, only where allegations of GAAP violations are coupled with evidence of the defendant’s fraudulent intent to mislead investors, may such allegations be sufficient to state a claim
• stating that recklessness may be found where the “danger of misleading buyers or sellers ... is ... known to the defendant”
• noting that “allegations of GAAP violations or accounting irregularities” may state a claim of scienter where “coupled with evidence that the violations or irregularities were the result of ... fraudulent intent to mislead investors” (quotation omitted)
• finding generic allegations a shared business motive related to company financial success do not support scienter
• in case of omissions, scienter proved by knowledge of the omitted fact plus knowledge that the omission is likely to mislead investors

Source: CourtListener parenthetical corpus (CC0).