Magna Wins Dismissal of Shareholder Suit

On behalf of Frank Stronach, founder and former chairman of Magna International, Skadden secured a dismissal with prejudice of an amended putative class action brought by Magna shareholders, alleging that the company and current and former executives violated Sections 10(b) and 20(a) of the Securities Exchange Act. On August 23, Judge Naomi Buchwald of the U.S. District Court for the Southern District of New York held that the plaintiffs' amended complaint "fails to allege any material misstatements or omissions, does not adequately allege scienter, and, indeed, borders on the absurd."