Broker-Dealer Litigation - Greenberg Traurig LLP

Phila. Fin. Mgmt. of S.F., LLC v. DJSP Enterprises, Inc., 2011 WL 4591541 (S.D. Fla. Sept. 30,
2011).
Plaintiffs brought suit against defendants alleging violations of federals securities laws
and defendants filed a motion to dismiss for failure to meet the heightened pleading standards of
the PSLRA. Specifically, defendants argued that plaintiffs failed to properly plead material
misrepresentations and omissions or allege the requisite scienter. Plaintiffs alleged that
defendants made material misrepresentations and omissions in SEC filings, press releases, and
other public statements about defendants’ “rigorous” processes to ensure the “efficient” and
“accurate” handling of foreclosures, when in fact defendants’ often took short cuts and used
processes that “were, in fact, entirely chaotic in substantial disarray.” The court did not find that
defendants’ statements were false or misleading because many were not specific, verifiable facts
that reasonable investors would rely on, but instead the type of vaguely positive assertions
considered “puffery.” Further, plaintiff failed to adequately plead scienter.
Patel v. Patel, 761 F. Supp. 2d 1375 (N.D. Ga. 2011).
Investors brought action against bank’s officers and directors alleging violations of
federal securities laws and defendants moved to dismiss for failure to state a claim as required
under the heightened pleading requirements of the PSLRA. Plaintiffs claimed defendants
concealed bank’s true financial condition and business operations. The court granted defendants’
motion to dismiss finding that investors’ allegations were insufficient to plead a strong inference
of scienter and that investors failed to allege loss causation.
City of Pontiac General Employees Retirement System v. Schweitzer-Maudit International, Inc.,
806 F. Supp. 2d 1267 (N.D. Ga. 2011).
Investors brought securities-fraud class action against corporation and its officers and
directors alleging defendants engaged in a fraudulent scheme to artificially inflate corporation’s
stock price in violation of federal securities laws and defendants moved to dismiss. The court
granted the defendants’ motion and found that investors failed to plead fraud with particularity.
Further, the court found that plaintiffs failed to sufficiently allege scienter, but did sufficiently
allege loss causation.
In re Immucor, Inc. Securities Litigation, 2011 WL 2619092 (N.D.Ga. June 30, 2011)
Plaintiffs brought suit against defendant medical supplier alleging violations of federal
securities laws and defendants moved to dismiss for failure to state a claim as required under the
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