Thursday, April 20, 2006

The Big Picture

Who says Buckeyes can’t churn out opinions just as long and complex as they do in SDNY? Well, if it’s you, it’s time to check out Judge Algenon L. Marbley’s (S.D. Ohio) 100 page monster in the In re Cardinal Health securities class action. The best part is the conclusion, where Judge Marbley commented that “as Plaintiffs stated during oral argument, the scienter analysis in these types of securities fraud cases is akin to looking at a painting. Though one or two brush strokes may be more powerful up close, to fully appreciate the painting, the viewer must step back to take in the ‘big picture.’ Applying this analogy to the facts in this case, the Complaint viewed in toto the conclusion that Plaintiffs have met their burden under the PSLRA, pleading sufficient facts to raise a strong inference that the Cardinal Defendants acted with the requisite scienter.”

Bottom line? E&Y and one exec dismissed. The company and 5 execs remain in the case.

You can read In re Cardinal Health Inc., issued April 12, 2006, at 2006 U.S. Dist. LEXIS 18687.

Nugget: “Considering Plaintiffs' arguments, the Court agrees that where the Plaintiffs allege that the subject of the misrepresentations and omissions caused their losses, they need not specify "corrective disclosures" causing the decline in stock value.”

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