On March 9, the U.S. District Court for the Central District of California dismissed with prejudice a securities fraud complaint against Impac Mortgage Holdings, Inc., an Orange County lender that specialized in “low documentation loans.” Disagreeing with the plaintiff shareholders “core operations inference” argument that the case was about a “staggering race-to-the-bottom” of loan quality and underwriting standards, the court instead held that the case was more “about a company involved in a volatile industry at the outset of a long, destructive economic downturn." This decision is particularly noteworthy given that not only have there been few dismissals with prejudice of mortgage-related shareholder cases in the federal courts, but the bar has been raised for pleading standards for shareholder class actions.