Motion to Dismiss Class Action Complaint Against Credit Suisse First Boston is Granted

Motion to Dismiss Class Action Complaint Against Credit Suisse First Boston is Granted

News

WilmerHale recently prevailed on a motion to dismiss a securities class action complaint filed against its client, Credit Suisse First Boston (CSFB), in federal district court.

On March 31, Judge Shira A. Scheindlin of the Southern District of New York dismissed with prejudice a complaint that alleged that CSFB had conspired with fourteen Issuers to falsely understate IPO prices and analyst revenue projections for those issuers. These alleged understatements were said to have caused the stock prices for the Issuers to become artificially inflated when post-IPO prices inevitably exceeded the IPO price and when the Issuers inevitably beat the low-balled projections.

Judge Scheindlin found that the IPO prices, published in the Issuers’ prospectuses, were not misleading, and that plaintiffs had failed to adequately allege, among other things, loss causation.

The WilmerHale team on the case included Peter Vigeland and Paul Clewell of the firm’s New York office.