United States Seventh Circuit

Securities fraud class action suit was properly dismissed for failure to state a claim where: 1) plaintiffs are sophisticated investors whose complaint, along with judicially-noticeable facts, reveals that they were not induced by a mining company's misrepresentations to tender their shares, and therefore they cannot show reliance under SEC Rule 10b-5; and 2) failure to allege that they sold any shares at a loss eviscerates their claim under section 11 of the Securities Exchange Act.

Appellate Information

• Decided 01/05/2009
• Published 01/05/2009

Judges

• POSNER, Circuit Judge., Before POSNER, KANNE, and TINDER, Circuit Judges.

Court

• United States Seventh Circuit

Counsel

• For Appellant:
  
• Christopher J. Barber (argued), Peter J. Meyer, Chicago, IL, for Plaintiffs-Appellants.


• For Appellees:
  
• Gregory A. Markel (argued), Cadwalader, Wickersham & Taft, Joseph S. Allerhand (argued), Weil, Gotshal & Manges, New York, NY, Christopher J. Barber, Chicago, IL, William J. Mulligan, Davis & Kuelthau, Milwaukee, WI, for Defendants-Appellees.