Daily Archives: July 15, 2013, 12:24 pm

The Confidential Witness Problem in Securities Litigation — The D & O Diary

In an unusual July 9, 2013 post-settlement order in the Lockheed Martin securities class action lawsuit, Southern District of New York Jed Rakoff examines the role of confidential witness-based allegations, both in the Lockheed case itself and in securities cases in general. As is clear from Judge Rakoff’s memorandum, the plaintiffs’ reliance on confidential witness testimony to try to meet…

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The SEC’s Low Burden of Proof – WSJ

Here’s a modest proposal: When a federal law-enforcement agency sets out to punish a private citizen or business based on accusations of fraud or similar wrongdoing, it should have to prove its case by more than just a preponderance of the evidence. While proof beyond reasonable doubt may be too high a hurdle in nominally civil cases that can’t result…

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