South Ferry LP #2 v. Killinger

This decision clarified whether a theory of scienter based on the “core operations” inference satisfies the PSLRA’s heightened pleading standard. In siding with the plaintiffs, the Ninth Circuit held that “[a]llegations that rely on the core operations inference are among the allegations that may be considered in the complete PSLRA analysis.” The court explained that under the “holistic” approach required by Tellabs, all allegations must be “read as a whole” in considering whether plaintiffs adequately pled scienter.