Ashcroft v. Iqbal Provides Guidance On Heightened "Plausibility" Pleading Standard

In its recent decision in Ashcroft v. Iqbal, the Supreme Court delivered its first interpretation of the new (and higher) “plausibility” pleading standard created in its landmark 2007 decision in Bell Atlantic Corp. v. Twombly. Iqbal confirmed that the plausibility standard requires factual allegations in a complaint that are more than “merely consistent” with wrongful conduct. It also confirmed that the plausibility standard applies to all federal litigation, not just the antitrust context in which it was announced in Twombly. Perhaps most important, Iqbal provided a clear three-step framework for assessing Rule 12(b)(6) motions to dismiss.