Second Circuit Affirms Dismissal of Star Gas Securities Class Action

Skadden secured a significant victory for firm client Star Gas Partners when the Second Circuit affirmed the Connecticut District Court's complete dismissal with prejudice of a federal securities class action alleging violations of Section 10(b) of the 1934 Act and Sections 11 and 12(2) of the 1933 Act. In affirming the grant of the motion to dismiss, the Court of Appeals ruled on August 20 that plaintiffs had failed to allege facts demonstrating that defendants made any forward looking statements in bad faith or without a reasonable basis.