Summary
distinguishing between allegations based on information and belief and those "supported by some document or statement on personal knowledge by a potential witness"
Summary of this case from Florida State Bd. of Admin. v. Green TreeOpinion
No. CIV. A. 97-11159-WGY.
March 26, 1998.
Steven Schulman, Lori G. Feldman, William C. Fredericks, Kim Elaine Miller, David Bershad, Sanford P. Dumain, Milberg, Weiss, Bershad, Specthrie Lerach, New York City, Arnold Levin, Levin, Fishbein, Sedran Berman, Philadelphia, PA, Barbara A. Podell, Stuart H. Savett, Savett, Frutkin, Podell Ryan, P.C., Philadelphia, PA, Lawrence Soicher, Law Offices of Lawrence Soicher, New York City, Richard S. Schiffrin, Andrew L. Barroway, Schiffrin Craig, Ltd., Bala Cynwyd, PA, David Jaroslawicz, Jaroslawicz Jaros, New York City, Stephen Moulton, Nancy F. Gans, Moulton Gans, Boston, MA, for Jesse P. Lirette, Sr., Plaintiff.
Steven Schulman, Lori G. Feldman, William C. Fredericks, Kim Elaine Miller, David Bershad, Sanford P. Dumain, Milberg, Weiss, Bershad, Specthrie Lerach, New York City, Barbara A. Podell, Stuart H. Savett, Savett, Frutkin, Podell Ryan, P.C., Philadelphia, PA, Lawrence Soicher, Law Offices of Lawrence Soicher, New York City, Richard S. Schiffrin, Andrew L. Barroway, Schiffrin Craig, Ltd., Bala Cynwyd, PA, Stephen Moulton, Nancy F. Gans, Moulton Gans, Boston, MA, for Andre Kraiem, Plaintiff.
Steven Schulman, Lori G. Feldman, William C. Fredericks, Kim Elaine Miller, Milberg, Weiss, Bershad, Specthrie Lerach, New York City, Barbara A. Podell, Stuart H. Savett, Savett, Frutkin, Podell Ryan, P.C., Philadelphia, PA, Lawrence Soicher, Law Offices of Lawrence Soicher, New York City, Richard S. Schiffrin, Andrew L. Barroway, Schiffrin Craig, Ltd., Bala Cynwyd, PA, Stephen Moulton, Nancy F. Gans, Moulton Gans, Boston, MA, for Victor Kraiem, Plaintiff.
Jeffrey S. Abraham, Milberg, Weiss, Bershad, Specthrie Lerach, New York City, for Michael Prozan, Morris Satloff, Mark R. Katz, On behalf of themselves and all others similarly situated, Consolidated Plaintiffs.
William H. Paine, Jeffrey B. Rudman, James J. Nicklaus, Hale Dorr, Boston, MA, for Frank A. Ingari, Cynthia A. Deysher, David S. Cole, Defendants.
ORDER
The first paragraph of the Complaint in this matter contains general and undifferentiated assertions that the allegations that follow are not only founded on "information and belief," but are also based upon "investigation by plaintiffs' counsel." See Compl. ¶ intro. This is no longer an acceptable approach to pleading. As the Private Securities Litigation Reform Act, Pub.L. No. 104-67, § 101(b), 109 Stat. 737, 743-49, (Dec. 22, 1995) (codified at 15 U.S.C. § 78u-4), makes clear beyond peradventure, "if an allegation regarding the [allegedly misleading] statement or omission is made on information and belief, the complaint must state with particularity all the facts on which that belief is based." 15 U.S.C. § 78u-4(b)(1). The Plaintiffs here fail utterly to comply with this enhanced pleading requirement.
Accordingly, within ten days of the date of this Order, the Plaintiffs shall specify, as to each particular allegation (i.e., every sentence or clause separated by a comma or conjunction), whether that allegation is made upon information and belief or is supported by some document or statement on personal knowledge by a potential witness. Sources need not be specified, but the Court needs to know which is which. As to statements made upon information and belief, the Court will assume that the factual averments set out "with particularity all the facts on which the belief is formed." The response to this Order may be styled as a "Supplement" to the Complaint.
SO ORDERED.