Liberty Tax and Former Officers Obtain Dismissal of Securities Suit

Skadden represented a former officer of Liberty Tax, Inc. in securing the dismissal of a putative class action asserting disclosure-based claims under the Securities Exchange Act of 1934 against the company and two of its former officers arising from purported sexual misconduct by the company’s founder. On January 17, Judge Nicholas G. Garaufis of the U.S. District Court for the Eastern District of New York dismissed the complaint in its entirety, holding that the plaintiffs failed to allege a material misrepresentation or omission and failed to plead loss causation.