The failure to survive a motion to dismiss based on deficient pleading of claims alleged in a federal securities class action results in the end of the litigation (when such motion is granted with prejudice). This obstacle, however, presents only part of the story. Today, due to developments that are addressed in this Article, plaintiffs institute federal securities class actions against fewer types of defendants as contrasted with the situation two decades ago.
Steinberg, Marc I., Pleading Securities Fraud Claims - Only Part of the Story (October 15, 2013). SMU Dedman School of Law Legal Studies Research Paper No. 131. Available at SSRN: https://ssrn.com/abstract=2437464 or http://dx.doi.org/10.2139/ssrn.2437464