Tuesday, January 24, 2006

D.C. Circuit Speaks on PSLRA For First Time

In the ten years since the enactment of the PSLRA, it seems the D.C. Circuit Court of Appeals has never once mentioned the statute in a reported case -- until now. In evaluating an appeal from the dismissal "with prejudice" of Plaintiffs’ claims against accounting firm Radin Glass & Co. and CIBC World Markets Corp., the Panel (led by Chief Judge Douglas H. Ginsburg) held that "the district court did not err in determining [Plaintiff’s] oral request to amend her complaint was not a proper motion for leave." "The district court did, however, fail adequately to explain" "why it dismissed [Plaintiff’s] complaint with prejudice," so "we therefore vacate the order of dismissal and remand the case for the district court to enter a new order either dismissing without prejudice or explaining its dismissal with prejudice in a manner consistent with this opinion."

You can read Belizan v. Simon Hershon, issued January 17, 2006, here or at 2006 U.S. App. LEXIS 1018.

Nugget: "Dismissal with prejudice is warranted only when a trial court determines that the allegation of other facts consistent with the challenged pleading could not possibly cure the deficiency."

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