Skadden litigators won the dismissal of a consolidated class action filed in the U.S. District Court for the Eastern District of Virginia against firm client BearingPoint, Inc. and its former CFO. Plaintiffs asserted claims under the federal securities laws, alleging that the defendants made materially misleading statements between Aug. 14, 2003 and April 20, 2005 with respect to BearingPoint's financial results in its SEC filings and press releases. In ruling against the plaintiffs, Judge Liam O'Grady applied the U.S. Supreme Court's decision in Tellabs, Inc. v. Makor Issues & Rights, Ltd. and dismissed the complaint with prejudice, concluding that it failed to adequately allege scienter against any of the defendants. On Nov. 19, 2007, the district court denied the plaintiffs' motion to alter or amend the court's decision.
Read a detailed analysis of the Tellabs decision.