Broker-Dealer Litigation - Greenberg Traurig LLP

causation as required under the PSLRA. Specifically the court did not find a link between later
partial corrective disclosures that the plaintiff claimed negatively affected its stock price. The
court also did not find how those partial disclosures related to the improper credit score and
internal model misstatements alleged in plaintiff’s complaint.
Wyatt v. Inner City Broadcasting Corporation, 2011 WL 4484071 (S.D.N.Y. Sept. 28, 2011).
Plaintiff brought suit against defendants alleging violations of federal securities laws.
Defendants moved to dismiss for failure to state a claim in accordance with the heightened
pleading requirements of the PSLRA. Plaintiff a shareholder in defendant company, alleged that
defendant failed to provide him with information relating to a debt purchase agreement, and
information concerning whether the company planned to seek approval of disinterested
shareholders and directors regarding the debt purchase agreement. The court granted the
defendants’ motion to dismiss finding that plaintiff failed to allege fraud with the requisite
particularity, reliance and loss causation.
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Tide Natural Gas Storage I, L.P. v. Falcon Gas Storage Company, Inc., 2011 WL 4526517
(S.D.N.Y. Sept. 29, 2011).
Plaintiffs brought suit against defendants alleging violations of federal securities laws.
Defendants 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 fraudulently misrepresented
material facts concerning inventories of certain materials in relation to an acquisition. The court
denied defendants’ motion to dismiss finding that plaintiffs’ complaint adequately pleaded the
specified false and deceptive statements made by defendants with the particularity required and
alleged facts giving rise to a strong inference of scienter.
Tyler v. Liz Claiborne, Inc., 2011 WL 4498983 (S.D.N.Y. Sept. 29, 2011).
Investors brought a putative class action against corporation, its president and CEO,
alleging defendants fraudulently misrepresented facts relating to corporation’s relationship with a
department store in violation of the Securities Exchange Act of 1934. Defendants moved to
dismiss for failure to state a claim as required under the heightened pleading standards of the
PSLRA. The court denied defendants motion to dismiss holding that plaintiffs’ allegation that
the corporation failed to repurchase its own stuck was insufficient to allege scienter.
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