The original complaint charges Swiss Re and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Swiss Re is the world’s largest reinsurer with 70 offices in more than 25 countries. Specifically, the complaint alleges that during the Class Period, defendants made false and misleading statements about the Company’s financial condition. Specifically, defendants failed to disclose that Swiss Re’s Credit Solutions unit had written two credit default swaps that exposed the Company to great financial risk. In a credit default swap, one party guarantees that a third party borrower will not default on a debt. In this case, Swiss Re guaranteed certain mortgage-backed securities which included some subprime and collateralized debt obligations. When the existence and nature of the credit default swaps was disclosed, Swiss Re’s stock price dropped from CHF97.55 to CHF87.55 (Swiss Francs) the next day.
On July 29, 2008, the Court granted the motion to appoint the Plumbers' Union Local No. 12 Pension Fund as lead plaintiff and appointed Coughlin Stoia Geller Rudman & Robbins LLP as lead counsel. On September 10, 2008, the lead plaintiff filed an Amended Complaint. On November 10, 2008, the defendants filed a motion to dismiss the Amended Complaint. On July 31, 2009, Judge John G. Koeltl signed the Order denying the pending motion to dismiss without prejudice as moot. The plaintiff's application to file an Amended Complaint is granted.
On August 14, 2009, the lead plaintiff filed a Second Amended Complaint. On September 8, 2009, the defendants filed a motion to dismiss the Second Amended Complaint.
According to the Opinion and Order signed by Judge John G. Koeltl on October 4, 2010, the Court has considered all of the arguments raised by the parties. To the extent not specifically addressed, they are either moot or without merit. For the reasons explained above, the defendants' motion is granted and the complaint is dismissed with prejudice. The Clerk is directed to enter judgment dismissing this action and closing this case. The next day, judgment was entered and the case was closed.