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Screening Out Scapegoating
The central aim of the pleading standard is to avoid claims of so-called "fraud by hindsight." In the context of the credit crisis, in which emotions are high and hindsight is the official language of the blame game, it's perhaps not surprising that some plaintiffs, impatient for retribution, have stumbled in meeting the pleading standards. Indeed, it may mean the provision, and judges that interpret it, are doing their jobs.