The Sidebar: Supreme Court of the United States

The case NVIDIA v. Öhman, concerning the sufficiency of pleadings under the Private Securities Litigation Reform Act (PSLRA). The core dispute centers on the level of detail required in complaints alleging corporate fraud, specifically regarding the use of expert reports and the necessity of disclosing the contents of internal documents. The justices debated the appropriate balance between preventing frivolous lawsuits and allowing meritorious claims to proceed, questioning whether the Ninth Circuit's standard was too lenient. Arguments focused on the interpretation of "particularity" under the PSLRA and whether a "bright-line rule" should be established. The justices also grappled with the role of circumstantial versus direct evidence in establishing scienter.