Court Dismisses Claims Against CFO in Securities Fraud Lawsuit

Skadden secured the dismissal with prejudice of claims against the former CFO of KiOR, Inc. in a securities fraud lawsuit alleging that the company had misrepresented its business operations to investors before its initial public offering and in later statements about its ability to succeed commercially. On May 4, Judge Lee Rosenthal of the U.S. District Court for the Southern District of Texas concluded that the plaintiffs had not pleaded a strong inference that the former CFO acted with scienter. The court also held that he truthfully disclosed KiOR's debt, costs and losses during earnings calls.