Cases, Deals, Settlements
SGR Attorneys Win Dismissal of Multi-Billion Dollar Security Case
SGR’s John Despriet, James Connelly, Rachel King Powell and Lauren Hayter recently won the dismissal of a multi-billion dollar securities class action against their client, the Chief Accounting Office of Mirant Corporation, an Atlanta-based energy trading firm, and several other defendants. The plaintiffs’ claims, filed in the United States District Court, Northern District of Georgia, arose under the Securities Act of 1933 and the Securities Exchange Act of 1934, and accused the defendants of misleading investors about the value of the company’s shares. SGR moved to dismiss all of the claims against its client on grounds that the plaintiffs failed to state a claim and failed to allege with particularity facts giving rise to a strong inference of scienter. SGR constructed the arguments and briefed several of the most complicated accounting - related claims in the case — claims that impacted the other defendants as well. The court sided with the defendants on all counts and dismissed the lawsuit in its entirety.
