Strategy for de Fendants Facing a Leave Motion to Commence a Class Act Ion Under the Securities Act

• Author: David Di Paolo and Margot Finley
• Pages: 167-175

167

sTr aTeGY for defendanTs

faCInG a leaVe MoTIon To

CoMMenCe a Class aCTIon

under THe

seCurITIes aCT

David Di Paolo and Margot Finley

Abstract: David Di Paolo and Margot Finley discuss the

merits of two contrast ing strategies for defendants faced with

a motion for leave to commence a class proceeding under the

Securities Act for misrepresentation in the secondary secur-

ities market: don’t oppose leave, saving cost s and avoiding

premature discover y, or vigorously contest leave with sub-

stantial ev idence demonstrating that the plaintiff ’s claim has

no reasonable possibility of success.

CCAR 8-2.indb 167 4/25/2013 3:10:32 PM