What question did this study set out to answer?

This analysis aims to evaluate two distinct strategies for defendants responding to class action leave motions under the Securities Act.

February 9, 2026

Strategy for Defendants Facing a Leave Motion to Commence a Class Action Under the Securities Act

Key Points

This analysis aims to evaluate two distinct strategies for defendants responding to class action leave motions under the Securities Act.
Discussed contrasting strategies for defendants facing leave motions.
Analyzed implications of opposing or not opposing leave motions.
Evaluated the potential costs and advantages of each strategy.
Not opposing leave may reduce costs and avoid early discovery.
Opposing leave with substantial evidence may demonstrate that the plaintiff's claim lacks merit.

Abstract

David Di Paolo and Margot Finley discuss the merits of two contrasting strategies for defendants faced with a motion for leave to commence a class proceeding under the Securities Act for misrepresentation in the secondary securities market: don’t oppose leave, saving costs and avoiding premature discovery, or vigorously contest leave with substantial evidence demonstrating that the plaintiff’s claim has no reasonable possibility of success.

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