Second Circuit -- Fait v. Regions Financing Trust, et al.

Fait v. Regions Financing Trust, et al.

Securities action alleging misstatements - pleading is inadequate for not alleging both actual falsity and knowing misstatement.

 Under Virginia Bankshares, statements of opinion are only actionable if actually false as to the material referred to and not the true opinions of the speaker - here, no plausible allegation in pleading that execs did not actually hold the opinion about the goodwill value of an acquisition.  


As pleading does not allege that there is an objective criterion for determining the adequacy of loan reserves, pleading must suggest both falsity and dissembling.