Broker-Dealer Litigation - Greenberg Traurig LLP

In re Smith & Wesson Holding Corp. Sec. Litig., 2011 WL 6089727 (D. Mass. Mar. 25, 2011).
Investors brought a class action suit against gun manufacturing company and its officers
alleging violations of federal securities laws. Defendants subsequently filed a motion to dismiss
for failure to state a claim as required under the heightened pleading standards of the PSLRA.
Plaintiffs claimed that defendants issued a series of public statements in which they
misrepresented level of demand for products. The court granted defendants’ motion finding no
evidence of scienter and that statements made by corporation regarding demand and general
sales were not false or misleading.
Hill v. State Street Corporation, 2011 WL 3420439 (D. Mass. Aug. 3, 2011).
Plaintiffs brought a class action suit against defendants alleging violations of federal
securities laws. Plaintiffs alleged defendants misled the market regarding the defendant
company’s exposure when it assured investors in the fall of 2008 that debt securities contained in
its investment portfolio collateralized in part by risky mortgage-backed securities—were of high
quality. Plaintiffs further alleged that as a result of those improper statements plaintiffs suffered
substantial damages. The court denied defendants’ motion to dismiss holding that plaintiffs
satisfied heightened pleadings standard required under the PSLRA for their claims under the
Securities Exchange Act of 1934.
In re Boston Scientific Corporation Securities Litigation, 2011 WL 4381889 (D. Mass. Sept. 19,
2011).
Plaintiffs brought suit against defendant alleging violations of federal securities laws.
Defendants then filed a motion to dismiss for failure to state a claim as required under the
heightened pleading standards of the PSLRA. Plaintiffs alleged that defendants made several
misrepresentations or omitted to disclose information regarding unlawful sales practices leading
to an artificial inflation of the company’s stock. The court granted defendants’ motion to dismiss
finding that plaintiffs failed to sufficiently allege a material misrepresentation, omission and a
strong inference of scienter.
Casula v. AthenaHealth, Inc, 2011 WL 45661155 (D. Mass. Sept. 30, 2011).
Lead plaintiff brought suit against defendants alleging violations of federal securities
laws. Defendants filed a motion to dismiss for failure to state a claim and failure to meet the
heightened pleading requirements under the PSLRA. Plaintiff alleged that defendant, company
and officers improperly amortized certain revenues over shorter terms instead of the expected
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