Will Motive, Opportunity or Recklessness No Longer Constitute Scienter for Fraud? A Survey of Recent Federal District Court Decisions After the Enactment of the 1995 Private Securities Litigation ,Reform Act

Abstract

The Supreme Court has yet to rule on the appropriate pleading standard for fraud following the enactment of the Reform Act, and until the Supreme Court does, it is likely that federal district courts will continue to apply the Reform Act as they see fit. By analyzing recent federal district court decisions, this Cormnent will focus on the justifications for the decisions made by federal district courts and whether some federal district courts have gone too far in their interpretations of the Reform Act by holding that motive, opportunity, or recklessness no longer constitute scienter for fraud.