Securities Litigation Update
Last week was not a good one for securities plaintiffs in New York. On Tuesday, the Second Circuit affirmed dismissal of a securities fraud class action alleging both 10b-5 and Section 14(a) claims, in an unreported decision last week, in Leykin v. AT&T Corp., 2007 U.S. App. LEXIS 2378 (2d Cir. Jan. 30, 2007) (also affirming dismissal of state law claims pursuant to SLUSA). On the following day, the Second Circuit affirmed dismissal of a securities fraud class action against Deloitte in Lattanzio v. Deloitte & Touche LLP, 2007 U.S. App. LEXIS 2061 (2d Cir. Jan. 31, 2007) (citing lack of an attributed statement (Wright), aiding and abetting (Central Bank) and loss causation (Dura)). The same day, Judge Victor Marrero dismissed without prejudice a securities fraud class action, In re DRDGOLD LTD. Secs. Litig., 2007 U.S. Dist. LEXIS 7180 (S.D.N.Y. Jan. 31, 2007), largely on 9(b) grounds, and Judge Kenneth Karas dismissed without prejudice a non-class securities and derivative action, Kalin v. Xanboo, Inc., 2007 U.S. Dist. LEXIS 3342 (S.D.N.Y. Jan. 31, 2007).
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