CFL Legal Procedures in Financial Disputes 2

Question 1

Under FRCP 9(b), how must a plaintiff plead a claim of securities or investment fraud?

Accepted Answer

With particularity as to the circumstances constituting fraud

Answer

Rule 9(b) requires fraud circumstances (who, what, when, where, how) to be stated with particularity, though intent may be alleged generally.

Question 2

Under the PSLRA, as interpreted in Tellabs v. Makor, what must a securities fraud complaint allege regarding scienter?

Accepted Answer

Facts giving rise to a strong inference of scienter at least as compelling as any opposing inference

Answer

Tellabs held the inference of scienter must be cogent and at least as compelling as any opposing innocent inference.

Question 3

A lender sues a borrower from another state in federal court on diversity grounds. What minimum amount in controversy is required?

Accepted Answer

More than $75,000, exclusive of interest and costs

Answer

28 U.S.C. § 1332(a) requires the matter in controversy to exceed $75,000 exclusive of interest and costs.

Question 4

Absent a waiver of service, how long does a defendant served with a federal summons have to answer under FRCP 12(a)?

Accepted Answer

21 days after service

Answer

Rule 12(a)(1)(A)(i) gives a served defendant 21 days to serve an answer.

Question 5

A domestic defendant timely returns a Rule 4(d) waiver of service. How long does it have to answer, measured from when the request was sent?

Accepted Answer

60 days

Answer

Waiving service extends the answer deadline to 60 days from the request (90 days if sent outside the U.S.).

CFL - Certified Financial Litigator Practice Test