Broker-Dealer Litigation - Greenberg Traurig LLP

Local 731 I.B. of T. Excavators and Pavers Pension Trust Fund v. Swanson, 2011 WL 2444675
(D.Del. June 14, 2011).
Lead plaintiff brought consolidated suit against various officers for alleged violations of
federal securities laws. Defendants moved to dismiss for failure to state a claim as required under
the heightened pleading standard of the PSLRA. Plaintiffs alleged that defendants deliberately
misrepresented the financial performance of a yellow pages publishing company, resulting in an
artificial inflation stock price. The court denied defendants’ motion to dismiss finding that
plaintiffs’ complaint pleaded sufficient facts regarding defendants alleged material
misrepresentations, omissions and scienter.
In re Heckmann Corp. Sec. Lit., 2011 WL 2413999 (D. Del. June 16, 2011).
Plaintiffs brought suit against defendants alleging violations of federals securities laws.
Defendants moved to dismiss for failure to state a claim as required under the heightened
pleading standards of the PSLRA. Specifically, plaintiffs alleged that defendants misrepresented
the strength of a potential acquisition target’s past financial and operating results, its past and
future growth prospects, managers’ experience, valuation of the business and the amount of due
diligence that had been done in relation to such business. The court denied the defendants’
motion to dismiss finding that the failure of defendants to inform voting shareholders on the
acquisition, raised the strong inference of scienter. The court also found an inference that
disclosures were withheld from shareholders in order to mislead or deceive them.
In re Heckmann Corporation Securities Litigation, 2011 WL 2446388 (D.Del. June 16, 2011).
Plaintiffs brought suit against defendants alleging violations of federals securities laws
and defendants moved to dismiss for failure to state a claim as required under the heightened
pleading standards of the PSLRA. Specifically, plaintiffs alleged that defendants misrepresented
the strength of a potential acquisition target’s past financial and operating results, growth
prospects, managers’ experience, valuation of the business and the amount of due diligence that
had been done in relation to such business. The court denied the defendants’ motion to dismiss
finding that the individual defendants’ signatures on the proxy solicitations properly
particularized those specific statements to the defendants. The court found plaintiffs adequately
pleaded scienter, that defendants omitted material facts in approving the merger and economic
loss causation.
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