According to the docket posted, on December 29, 2000, the Court entered the Memorandum Decision signed by U.S. District Judge Denny Chin granting the defendants' motion to dismiss the complaints in action #00cv3364 and action #00cv3849, with prejudice as to the federal claims and without prejudice as to the state law claims. On January 3, 2001, the Court entered Judgment, and the case was closed.
The complaint alleges that Dow violated federal securities laws, including Section 13(d) of the Securities Exchange Act of 1934, in an SEC filing on August 13, 1999 that contained false statements and omissions concerning potential liabilities and dangers of business disruption to which Dow would be exposed upon its acquisition by merger of Union Carbide. Specifically, the complaint alleges that Dow failed to disclose that Union Carbide is exposed to potential liabilities from its former pesticide plant in Bhopal, India that (i) released poisonous gas in 1984 that killed thousands and injured half a million people, and (ii) continues to cause environmental contamination in a densely populated region. The complaint alleges that Dow failed to disclose that: (i) Union Carbide is criminally charged in India for the Bhopal Disaster with culpable homicide and other charges, which expose it to potentially billions of dollars of liability; (ii) Union Carbide failed to appear in Indian criminal courts, was proclaimed an absconder and its assets in India were attached; (iii) Dow's Indian holdings will likewise be in danger of attachement by Indian courts; (iv) Dow's plans to expand operations in India will, therefore, be jeopardized; and (v) Union Carbide remains liable for damages from environmental contamination from its former Bhopal pesticide plant. The complaint further alleges that Dow's failure to address these matters has caused: (i) Dow to understimate the liabilities it stands to assume pursuant to the merger, and (ii) that Dow made an excessive offer for Union Carbide.