Broker-Dealer Litigation - Greenberg Traurig LLP

value of defendant company’s stock by concealing increasing financial difficulties with
appropriately staffing facilities necessary for patient safety and minimizing the significance of
repeatedly published reports of patient safety incidents at the company’s facilities. The court
denied defendants’ motion to dismiss finding that given the extent of state enforcement agencies’
findings and sanctions for inadequate services and patient care, defendants’ statements were
actionable and the allegations gave rise to a strong inference of scienter.
Plumbers and Pipefitters Local Union No. 630 Pension-Annuity Trust Fund v. Allscripts-Misys
Healthcare Solutions, Inc., 778 F. Supp. 2d 858 (N.D. Ill. 2011).
Investors brought class action suit against corporation, its CEO and CFO alleging
violations of federal securities laws and defendants filed a motion to dismiss for failure to state a
claim as required under the heightened pleading standards of the PSLRA. The court granted
defendants’ motion to dismiss in part, finding that CEO’s statements about corporation’s ability
to deliver solid results were not material, and denied defendants’ motion to dismiss in part,
finding that investors sufficiently alleged that CEO’s statement concerning corporation’s work
on implementation was misleading when made and that investors had sufficiently alleged
scienter.
Antelis v. Freeman, 799 F.Supp.2d 854 (N.D.Ill. 2011).
Plaintiff investor brought suit against former business partner for violations of federal
securities laws. Plaintiff alleged that (i) defendant failed to disclose that he would receive
approximately $100,000 in purported kickbacks for convincing investor to loan approximately
$333,000 to a third party for a real estate venture, (ii) the defendant falsely claimed he was an
equal investor in the venture, and (iii) the defendant made other misstatements about his wealth
and the likely success of the venture. Defendant moved to dismiss for failure to state a claim as
required under the heightened pleading standards of the PSLRA. The court dismissed
defendant’s motion, finding that Plaintiff’s allegations failed to allege a sufficient inference of
scienter. The court particularly relied on the fact that Defendant had also purchased a note from
the same third party in the same amount as plaintiff. Further, the court reasoned that a nonculpable
explanation most likely existed for defendants’ actions, especially given the fact that
plaintiff and defendant were friends for long duration prior to the investment at issue.
St. Lucie County Fire District Fire-Fighters’ Pension Trust Fund v. Motorola, Inc., 2011 WL
814932 (N.D. Ill. Feb. 28, 2011).
Plaintiffs brought class action suit against defendants alleging violations of the 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 claimed they suffered damage
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