Freudenberg v. E Trade Financial Corp.

How courts have described this case

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

• holding that a large write off combined with insider stock sales, among other things, was sufficient to establish scienter
• holding that plaintiff is still required to specify which statements were fraudulent; identify the speaker; state where and when the statements were made; and explain why the statements were fraudulent
• holding that scienter was plausibly alleged where CFO made assurances to investors despite receiving direct reports and attending a meeting where he would have received facts to the contrary
• noting that loss causation may exist when “ ‘truth’ about the company’s underlying condition, when revealed, causes the ‘economic loss’ ”
• discussing that the relevant truth required under Dura is not that a fraud was committed per se, but that the truth about the company's underlying condition, when revealed, causes the economic loss
• finding scienter adequately pled when confidential witnesses \had first-hand interactions with the defendants\ including reporting of specific risks

Source: CourtListener parenthetical corpus (CC0).