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On October 19, 2005, the United States District Court for the Western District of Washington dismissed a federal securities class action brought against drugstore.com, inc. and two of its current or former officers and directors. The suit alleged that defendants made false and misleading statements about drugstore.com's earnings and general business prospects. Plaintiffs alleged causes of action under the Securities Exchange Act of 1934 and SEC Rule 10b-5. Judge Ricardo S. Martinez dismissed all of plaintiffs' claims. The court, applying the heightened pleading standards of the Private Securities Litigation Reform Act of 1995 ("PSLRA"), found that all of the allegedly false statements were "forward-looking statements" and were accompanied by sufficient cautionary language to fall under the first prong of the safe harbor provided by the PSLRA.

The Simpson Thacher team includes James Kreissman, Simona Strauss, Hank Brier, Sarah Banola, summer associate Adam Anderson and paralegals Nancy Anderson and Ivy Flores.