Class Status Bid Denied In IMAX Securities Action

Class Status Bid Denied In IMAX Securities Action - 3/13/2009

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

DISMISSAL NEWS:

Class Status Bid Denied In IMAX Securities Action
Christine Caulfield

Securities Law 360. March 13, 2009
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EXCERPT: A federal judge has denied a bid for class certification by a group of Imax Corp. investors in securities litigation against the movie pioneer so that she can consider a bid for lead plaintiff status by a rival shareholder group. Judge Naomi Reice Buchwald of the U.S. District Court for the Southern District of New York refused Westchester Capital Management Inc.'s motion for certification without prejudice in an order Friday, pending the outcome of Snow Capital Investment Partners LP's motion for reconsideration of a two-year old court order appointing WCM top plaintiffs in the consolidated cases. Snow Capital — an investment partnership represented by Coughlin Stoia Geller Rudman & Robbins LLP — had sought status over WCM as lead plaintiff of the consolidated actions, arguing that WCM was an investment adviser that had not directly suffered any loss from Imax's alleged securities fraud but was merely claiming loss on behalf of five funds. “While other courts have held that an investment adviser may serve as lead plaintiff where it demonstrates that it has authority to sue on behalf of its clients, this court has not followed those decisions, but has held that despite such a grant of authority, the investment adviser itself did not suffer loss and lacks standing to sue,” Snow Capital told the court. WCM won its bid for lead plaintiff status on Jan. 17, 2007, after arguing that the five funds it advised — GS Master Trust, MSS Merger Arbitrage Fund, SphinX Merger Arbitrage Fund and The Steelworkers Pension Trust — had suffered the greatest loss in the aggregate of any Imax shareholders. The Steelworkers Pension Trust was granted co-lead plaintiff status, and Abbey Spanier Rodd & Abrams LLP lead counsel status. WCM then moved for class certification of the consolidated actions in November 2008.

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