context: Regardless of whether these allegations constitute motive, the other indicators of scienter are, in this court's view, sufficient to withstand the German Defendants' motion to dismiss. Plaintiffs' allegations go beyond mere accounting irregularities to assert systemic failures resulting from unsound credit policies, which ultimately led to Spiegel's bankruptcy. "To the outsider looking in, it is surely strongly inferential that every officer or director of [Spiegel] either had the knowledge of such deep financial difficulties or, if not, that his failure to have such knowledge equated to reckless disregard."
citation_a.signal: see
citation_a.parenthetical: denying motion to dismiss allegations against senior officers and directors accused of failing to disclose the "basic deterioration of LINC's corporate health"
citation_a.sentence: See Dardick, 149 F.Supp.2d at 988-89 and n. 2 (denying motion to dismiss allegations against senior officers and directors accused of failing to disclose the “basic deterioration of LINC’s corporate health”).
citation_b.signal: but see
citation_b.identifier: 100 F.Supp.2d 837, 837
citation_b.parenthetical: "pleading scienter based exclusively on a defendant's corporate position is insufficient to survive a motion to dismiss"
citation_b.sentence: But see Tel-labs, 262 F.Supp.2d at 946 n. 7 (“[i]t is entirely clear ... that the PSLRA abolishes the use of the group pleading doctrine to allege defendant’s scienter”); Chu II, 100 F.Supp.2d at 837 (“pleading scienter based exclusively on a defendant’s corporate position is insufficient to survive a motion to dismiss”).