|  | | 2006 News and Press Releases | | |
DISMISSAL NEWS:
Loss Causation, Falsity Of Reports Not Shown In Suit Claiming Shares Bought At Artificially Inflated Price
Judge Sweet
New York Law Journal. January 26, 2006
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EXCERPT: Joffee v. Lehman Brothers Inc.--Defendants Lehman Brothers Inc., Kenneth N. Goldman, M.D., and David Gruber, M.D. (collectively 'Lehman' or the 'Defendants ') have moved pursuant to Rules 12(b)(6) and 9(b), Fed. R. Civ. P., and the Private Securities Litigation Reform Act (the 'PSLRA') to dismiss the third amended complaint ('TAC' or 'Complaint') of David Joffee and thirty-six other individuals, and a subchapter 5 corporation (the 'Plaintiffs'). For the reasons set forth below, the motion is granted. … In sum, Plaintiffs have failed to plead loss causation because they have not alleged and cannot allege that Lehman's allegedly false predictions about the demand for Sunrise products actually caused the demand for Sunrise products to decline and the stock price of Sunrise to suffer. Conclusion Based on the foregoing, Defendants' motion to dismiss the Complaint is granted. It is so ordered. |
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