On June 26, 2008, WLF scored a victory when the U.S. Court of Appeals for the Second Circuit reversed a district court ruling that found that a corporation can be held liable in a securities class action case based on the collective knowledge or scienter of corporate employees, regardless of their position or role in making any alleged misstatements about the company”s financial matters. If the lower court decision had been upheld, it would have exposed many businesses to abusive class action lawsuits and be contrary to the pleading requirements that Congress intended to apply in securities litigation. The case was remanded to the district court where the plaintiffs will be allowed to refile their complaint, but only if they can allege specific acts of fraud, which is unlikely.