World Surveillance Group Inc (fka WSGI)

[coastiretired]

"WSGI's scienter allegations are also deficient. WSGI's conclusory allegation that La Jolla "manipulated" WSGI's stock price is not sufficient to create a "strong inference of scienter," as required for 10(b) liability. WSGI's argument that the complaint contains "multiple factual allegations supporting scienter" does nothing to help its cause since it does not actually cite any portions of the complaint. WSGI's bald assertion that "there should have been no doubt" that La Jolla's conduct would reduce the value of WSGI's stock is also insufficient. WSGI has wholly failed to plead "in great detail, facts that constitute strong circumstantial evidence of deliberately reckless or conscious misconduct," which is required to plead scienter. Given the deficiencies in WSGI's 10(b) claim already noted, I do not address the other arguments raised by La Jolla."