Broker-Dealer Litigation - Greenberg Traurig LLP

from a decline of defendant’s stock price as a result of defendants’ failure to disclose material
facts regarding projected revenue, demand for its products, progress in turning around a mobile
device division and a legal dispute. The court granted defendants’ motion to dismiss because (i)
given the various disclosures made to plaintiff, plaintiff failed to allege any material
misrepresentations or omission and (ii) that plaintiff failed to adequately plead scienter with
respect to any misstatements alleged.
City of Livonia Employees’ Retirement System v. The Boeing Company, 2011 WL 824604 (N.D.
Ill. Mar. 7, 2011).
Plaintiffs brought suit against defendants alleging violations of federal securities laws.
Plaintiffs claimed that defendants intentionally deceived them regarding the testing and delivery
schedule for an anticipated commercial aircraft. Defendants filed a motion to dismiss for failure
adequately allege scienter as required under the heightened pleading standards of the PSLRA.
The court denied the motion based, in part, on the testimony of a confidential witness who
allegedly testified regarding the scienter element. Later, the court granted reconsideration of the
motion given that the confidential witness had since been identified and recanted all previous
testimony. Upon reconsideration, the court granted defendants’ motion to dismiss finding that
absent the confidential witness’s testimony, plaintiff did not meet the heightened pleading
standard of the PSLRA.
Garden City Employees’ Retirement System v. Anixter International, Inc., 2011 WL 1303387
(N.D.Ill. Mar. 31, 2011).
Plaintiffs brought a class action 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 during the class
period, defendants engaged in a scheme to deceive and defraud investors of the true value of
defendant company’s stock. Specifically, Plaintiffs alleged that certain “organic growth
projections” were given to the market without a reasonable basis in fact and contained material
misrepresentations and omission by failing to indicate that the company was negatively affected
by the slowing economy. The court granted the defendants’ motion to dismiss without prejudice,
finding that plaintiffs’ claims failed to adequately plead falsity with the requisite particularity
and failed to sufficiently plead scienter.
Wehrs v. Benson York Group, Inc., 2011 WL 4435609 (N.D. Ill. Sept. 23, 2011).
Plaintiff brought suit against defendant for violations of federal securities laws. Plaintiff
filed a motion for summary judgment, which was granted by the court. Later, the court granted
defendants’ motion to vacate on the issue of damages. The court held that the previous ruling
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