As a result of the PSLRA’s heightened pleading standard and pre-dismissal motion discovery bar, as well as the requirements of cases such as Tellabs, plaintiffs in liability suits under the federal securities laws frequently rely on confidential witnesses. This practice has led to the “confidential witness problem” in securities litigation. In a September 25, 2017 post on The CLS Blue Sky Blog entitled “Confidential Distortion: Dealing with Confidential Witnesses in Securities Litigation” (here), Columbia Law School Professor John Coffee takes a look at the problems that have arisen in connection with confidential witness practices and the ways court have tried to deal with the problems. He then explores some possible “best practices” for courts and parties to use to try to avoid the problems, which I discuss below.
via Addressing the Use of Confidential Witnesses in Securities Litigation | The D&O Diary
