U.S. First Circuit - The FindLaw 1st Circuit Court of Appeals News and Information Blog

December 2016 Archives

Activist Loses Appeal for Appointed Counsel in Fight Against TSA Body Scanning

It has not easy being Sai. The activist, who goes by a mononym to reject any authority to make him use another name, got rejected by a federal appeals court in his case against the Transportation Security Administration. He wanted the court to appoint a lawyer for him in his fight against body scanning by the TSA.

The First Circuit Court of Appeal had one word for him: "No."

Court Tightens Requirement When Suing for Stock Fraud

Requiring stricter pleading of plaintiffs, a federal appeals court has ruled that complaints for securities fraud must trace stock purchases to specific false or misleading statements.

In the recent case In Re: Ariad Pharmaceuticals, Inc. Securities Litigation, the First Circuit held that plaintiffs cannot satisfy their pleading burden by "general allegations" when their purchases were traceable to fraudulent registrations under Section 11 of the Securities Act. When stock has been issued in multiple offerings, a plaintiff must plead that his or her shares were issued under a specific false or misleading registration statement.

According to the panel, a "general allegation that a plaintiff's shares are traceable to the offering in question is nothing more than a 'formulaic recitation' of that element."