United States Sixth Circuit

In plaintiff-investors' lawsuit against defendant, nation's largest provider of pharmaceutical care for the elderly, district court's dismissal is affirmed for the most part where: 1) dismissal of the section 10(b), section 20(a), and Rule 19b-5 claims is affirmed as the complaint fails to allege a material misstatement or omission, fails to plead loss causation, and the complaint does not sufficiently establish that defendants actually knew that the legal compliance statements were false when made; 2) district court's denial of one party's motion to intervene is affirmed; and 3) district court's dismissal of the section 11 of the Securities Act of 1933 is reversed and remanded as loss causation is not an element of a section 11 claim, but an affirmative defense to it.

Appellate Information

• Decided 10/21/2009
• Published 10/21/2009

Judges

• Before: DAUGHTREY and GILMAN, Circuit Judges;  MILLS, District Judge.

Court

• United States Sixth Circuit

Counsel

• For Appellees:
  
• ARGUED:  Eric Alan Isaacson, Coughlin Stoia Geller Rudman & Robbins LLP, San Francisco, California, for Appellants.  Harvey Kurzweil, Dewey & LeBoeuf LLP, New York, New York, for Appellees.   ON BRIEF:  Eric Alan Isaacson, Henry Rosen, Jennifer L. Gmitro, Shirley H. Huang, Coughlin Stoia Geller Rudman & Robbins LLP, San Francisco, California, Kevin L. Murphy, Graydon Head & Ritchey, LLP, Fort Mitchell, Kentucky, for Appellants.   Harvey Kurzweil, William T. Conway III, Richard W. Reinthaler, James P. Smith III, Dewey & LeBoeuf LLP, New York, New York, John E. Schreiber, Dewey & LeBoeuf LLP, Los Angeles, California, Douglas R. Dennis, Stephen M. Gracey, Frost Brown Todd LLC, Cincinnati, Ohio, William T. Robinson III, Frost Brown Todd LLC, Florence, Kentucky, for Appellees.