In Re WorldCom, Inc. Securities Litigation

How courts have described this case

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

• stating that “size alone does not necessarily create an inference of scienter” and considering other circumstantial evidence in addition to size of alleged fraud
• holding no heightened pleading standard for section 20(a) claims; once plaintiff successfully pleads an underlying section 10(b) claim, then without more, “those who control that violator may be sued too”
• noting that the court in First Jersey adopted the definition of control in 17 C.F.R. § 12b-2 as the standard for a Section 20(a) claim
• stating that “it does not appear that there is any requirement that the plaintiff plead or prove a culpable state of mind to allege or establish culpable participation”
• finding adequate allegations that underwriter was a statutory seller where underwriter “participated] in ‘road show1 meetings”
• determining that standing of the named plaintiffs to bring Section 12(a)(2

Source: CourtListener parenthetical corpus (CC0).