Brody v. McCracken (In re Silicon Graphics, Inc)
- Case Date: 1/23/1998
- Project Name: Class Action Reform
On January 23, 1998, WLF filed a brief urging the court to affirm a lower court decision dismissing a class-action securities fraud lawsuit against a high-tech company based in California. WLF argued that the lower court properly applied heightened pleading requirements imposed by Congress when it enacted the Private Securities Litigation Reform Act of 1995 ("PSLRA") over President Clinton's veto. Congress enacted the PSLRA after finding widespread abuse in the filing and prosecution of securities class action lawsuits. WLF argued that the lower court correctly interpreted the PSLRA as imposing a higher pleading standard than any previously existing for such lawsuits, and that the plaintiffs were not permitted to withhold from the defendants the facts and sources upon which they based their claims made on information and belief.