Court Grants Full Dismissal in Action Against Iconix Brand Group

On Oct. 25, Judge Paul Gardephe of the Southern District of New York granted Skadden’s motion to dismiss a purported securities class action brought against Iconix Brand Group, Inc. Following two restatements by the company and the resignation of four senior executives, the plaintiffs brought claims alleging that the defendants made materially false and misleading statements and omissions regarding certain of the accounting decisions that led to the restatements. Judge Gardephe dismissed the complaint in its entirety, concluding that the plaintiffs failed to plead facts showing fraudulent intent, and holding that “the Amended Complaint’s factual allegations — which are entirely circumstantial and do not rely on any internal documents or confidential witnesses — support a more cogent and compelling inference of non-fraud.”