Ninth Circuit Affirms Dismissal of Securities Fraud Claims Against Former Fremont General Execs

Skadden obtained another appellate win for former executives of bankrupt subprime mortgage giant Fremont General Corporation in a case in which they and the company were accused of misleading the public regarding Fremont’s underwriting standards. On November 29, the U.S. Court of Appeals for the Ninth Circuit affirmed the U.S. District Court for the Central District of California’s dismissal with prejudice, finding that the lead plaintiff, the New York State Teachers’ Retirement System, failed to state a claim with sufficient specificity. This was the plaintiff’s third amended complaint in the case. Skadden also secured the earlier dismissals on behalf of Fremont’s former executives.