Judge OKs Class In Infineon Shareholder Action

Judge OKs Class In Infineon Shareholder Action - 3/9/2009

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HEADLINES \| SETTLEMENTS AND DISMISSALS \| COURT FILINGS LINKS TO OTHER NEWS \| NEWS ARCHIVE	HEADLINES ARCHIVED SETTLEMENTS AND DISMISSALS ARCHIVED

SETTLEMENT NEWS:

Judge OKs Class In Infineon Shareholder Action
Jacqueline Bell

Securities Law 360. March 9, 2009
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EXCERPT: A federal court has certified a class in a consolidated shareholder class action against dynamic random access memory maker Infineon Technologies AG that claims the company engaged in a price-fixing scheme that led to investor losses. Judge James Ware of the U.S. District Court for the Northern District of California certified a class that included all those who purchased or otherwise acquired Infineon securities between March 13, 2000 and July 19, 2004, who sold their securities after June 18, 2002, and who suffered losses. The certified class includes investors who bought stock on the NYSE and the Frankfurt Stock Exchange and investors in Infineon’s public offerings. The lawsuit, first filed in 2004, claims that Infineon and certain of its officers and directors engaged in securities fraud by participating in an illegal price-fixing conspiracy involving DRAM and then making misrepresentations about the impact of artificially-inflated DRAM prices on Infineon’s corporate value. When the scheme was revealed through antitrust investigations and Infineon’s own guilty plea, the company’s stock price took a dive, resulting in injury to shareholders, the class action alleges. The certified class includes investors in the company’s initial public offering, despite defendants’ arguments that the class should not include those who bought stock during Infineon’s March 2000 IPO and during the 25-day quiet period, contending that those stock purchases were not made in presumptively inefficient markets and are therefore not entitled to the “fraud-on-the-market” presumption, relying on a decision by the U.S. Court of Appeals for the Second Circuit in Intial Pub. Offerings Sec. Lit., according to Ware. However, Judge Ware said that plaintiffs had submitted sufficient evidence that could rebut a presumption of inefficiency. In the opinion issued last week, Judge Ware also denied the defendants’ motion for partial summary judgment.

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