Ready for a surprise? Defendants have finally broken their losing streak on Dura, scoring a devastating victory that will no doubt reverberate through the halls of justice in the months and years to come. Wow, you’re not really that gullible, are you? Of course they didn’t, as Judge Robert E. Blackburn (D. Colo.) (the Judge in the Qwest Communications case), in partially upholding Plaintiffs claims on the motions to dismiss in the ICG Communications, Inc. securities class action, rejected Defendants’ Dura arguments, finding that the "announcements of substantially reduced earnings expectations, and other serious problems with ICG's business, reasonably can be seen as revelation of the negative truth about ICG's business. ICG's stock price dropped precipitously after these truths were revealed. These allegations are sufficient to plead loss causation under the applicable standard."
OK, once and for all, if the truth is disclosed and the stock plummets -- freeze, drop the overpriced pen, and back away -- easy does it (the Nugget has a hair trigger) -- from Dura. Face it, you’re surrounded, so just put it down, and maybe, just maybe, you won’t get hurt.
You can read In re ICG Communications, issued February 7, 2006, at 2006 U.S. Dist. LEXIS 6695.
Nugget: "The law does not require the plaintiffs to allege that ICG disclosed every fine detail of the alleged manipulation of ICG's revenue to establish that those manipulations caused the plaintiffs' losses."