Securities Law Alert, April 2013
This month’s Alert addresses a Seventh Circuit decision affirming dismissal of a securities fraud action against Boeing for failure to allege scienter. We also cover two rulings from the Southern District of New York: one dismissing an ERISA stock drop action against Pfizer based on the Moench presumption of prudence for fiduciaries of employee stock ownership plans; and another dismissing a securities fraud suit against Research In Motion on the grounds that the complaint alleged only “corporate mismanagement, not malfeasance.”
Finally, we discuss a Delaware Supreme Court decision holding that a California federal court’s dismissal of a derivative suit brought by shareholders of Allergan for failure to plead demand futility collaterally estopped a similar derivative action brought by a different group of Allergan shareholders.