GSC Partners CDO Fund v. Washington

How courts have described this case

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

• holding that scienter can be established “by alleging facts that constitute strong circumstantial evidence of conscious misbehavior or recklessness.”
• defining recklessness in this context as “[e]xtreme departure from the standards of ordinary care” that “presents a danger of misleading buyers or sellers that is either known to the defendant or is so obvious that the actor must have been aware of it.”
• “In every corporate transaction, the corporation and its officers have a desire to complete the transaction, and officers will usually reap financial benefits from a successful transaction.”
• “[A]n underwriter’s alleged motive to earn its underwriting fees is not alone sufficient to sustain a strong inference of fraudulent intent.”
• “Of course, it is not enough for plaintiffs to merely allege that defendants ‘knew’ their statements were fraudulent or that defendants ‘must have known’ their statements were false.”
• scienter, as required under the Private Securities Litigation Reform Act, can be established by “alleging facts that constitute strong circumstantial evidence of conscious misbehavior or recklessness.”

Source: CourtListener parenthetical corpus (CC0).