Fifth Circuit: City of Pontiac Gen Empl Retmn v. Vinit Asar, et al.

Statement admitted into evidence from the company's Audit Commission report was not impermissible group pleading, as it was admitted not for the statements asserted, but rather to establish what the committee members knew.

 Statements by corporate leadership don't establish a strong inference of scienter, as the allegations do not set out the precise statements, and there is no indication that the fraud went from the top down, as opposed to from the bottom up.

Audit committee's description of historical accounting practices raises sufficiently strong inference of scienter as to accounting leaderships' role in improperly enhancing financials reporting.

Sarbanes-Oxley filings evince improprieties, but none so glaring that being unaware of them would amount to reckless behavior.

&c, &c.

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