PRODANOVA v. H.C. WAINWRIGHT & CO., LLC

No. 19-56048.

993 F.3d 1097 (2021)

Daniela PRODANOVA, Individually and on behalf of all others similarly situated, Plaintiff, and Panthera Investment Fund L.P., Lead Plaintiff, Individually and on behalf of all others similarly situated, Plaintiff-Appellant, v. H.C. WAINWRIGHT & CO., LLC; Mark Viklund; Edward D. Silvera; Oren Livnat, Defendants-Appellees.

United States Court of Appeals, Ninth Circuit.

Filed April 8, 2021.


Attorney(s) appearing for the Case

Ira M. Press (argued) Peter S. Linden , and Angela M. Farren , Kirby McInerney LLP, New York, New York; Lionel Z. Glancy and Robert V. Prongay , Glancy Prongay & Murray LLP, Los Angeles, California; James R. Swanson , Jason W. Burge, and Kathryn J. Johnson , Fishman Haygood LLP, New Orleans, Louisiana; for Plaintiff-Appellant.

Jay S. Auslander (argued) and Adam Itzkowitz , Wilk Auslander LLP, New York, New York; Paul B. Salvaty and Jordan D. Teti , Hogan Lovells US LLP, Los Angeles, California; for Defendants-Appellees.

Before: Ronald M. Gould, Kenneth K. Lee, and Lawrence VanDyke, Circuit Judges.


OPINION

As its name suggests, a securities fraud lawsuit requires a showing of an intent to defraud investors. Mere negligence — even head-scratching mistakes — does not amount to fraud. So if the complaint fails to plead a plausible motive for the allegedly fraudulent action, the plaintiff will...

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