Reuters reports that 7th US Circuit Court of Appeals ruling was the latest example of a court taking a tough line after anonymous statements by former employees in securities fraud lawsuits are recanted or denied.
In the decision the court not only upheld the dismissal of the case by a lower court but also remanded it to consider whether the law firm should be sanctioned.

Statement denial

According to the report, companies are increasingly offering examples of witnesses denying statements attributed to them once their former employers find out their identities.
In the Boeing case, the witness was described in the lawsuit as a chief engineer at Boeing who worked on wing-stress tests for its Dreamliner airplane. Once the witness was named as Bishnujee Singh – who was actually employed by a Boeing contractor - he denied almost everything that had been reported by Robbins Geller's private investigator.