Simpson Thacher Obtains Dismissal of Federal Derivative Action Related to Alleged Options Dating Practices
On July 28, 2008, the United States District Court for the District of Connecticut dismissed with prejudice a putative shareholder derivative complaint filed against our clients NYFIX, Inc. and two of NYFIX’s outside directors, among other current and former officers and directors. The Court supported its opinion with arguments taken from the lead motion to dismiss written by Simpson Thacher. The plaintiffs alleged that NYFIX’s former directors breached their fiduciary duties by filing a false and misleading 10-K that minimized the impact of alleged irregularities with options dating at the company. The Simpson Thacher team consisted of Michael Chepiga, Michael Kibler, Rob Pfister, and Nathan Agam, with valuable assistance from former summer associate Colleen Keating and former paralegal Ann Drain.
See Court's Decision below.