Securities Law | Expert Legal Commentary
July 6, 2009
Institutional Investors Group v. Avaya: Clarifying Safe Harbor and Scienter Provisions of PSLRA
Institutional Investors Group v. Avaya
By
Josh Lawler and Joel B. Ginsberg of Zuber & Taillieu LLP
The Third Circuit provided important guidance regarding both the types of statements protectable under the PSLRA’s “Safe Harbor” provisions, and proper application of the Tellabs standard for alleging a “strong inference” of scienter in securities fraud cases. In Institutional Investors Group v. Avaya, 564 F.3d 242 (3rd Cir. 2009), the Court largely upheld a lower court’s dismissal of a shareholder lawsuit against Avaya, Inc. that challenged certain financial projections and other statements made by the company. The Court held that the projections were protected by Safe Harbor provisions, and that plaintiffs failed to adequately allege scienter as to most of the other statements.
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About the Authors
Josh Lawler is a Partner of Zuber & Taillieu LLP, focusing on corporate law and securities and finance law.
Joel B. Ginsberg is an Associate of Zuber & Taillieu LLP, focusing on corporate law, and securities and finance law.
Image Credit: ©iStockphoto.com/senaiaksoy
View a PDF of the judicial opinion