6th Circuit: Investors Don’t Show Scienter For Law Firm Of Fraudster’s Counsel

(June 11, 2024, 2:24 PM EDT) -- CINCINNATI — A federal judge in Tennessee was correct to dismiss claims of federal securities laws violations against a law firm that employed an attorney who acted as general counsel for a man who pleaded guilty to federal criminal charges on allegations that he operated a Ponzi scheme, the Sixth Circuit U.S. Court of Appeals found, holding that investors failed to show scienter on the part of the attorney under the heightened pleading standard of the Private Securities Litigation Reform Act (PSLRA)....