Federal District Court Denies Motion for Reconsideration for Appointment as Lead Plaintiff in Contested Securities Litigation Suit

By Lewis Tesser, Partner, and Timothy Nolen, Associate

A recent opinion out of the U.S. District Court for the Southern District of New York demonstrates a common dispute in securities litigation: choosing a lead plaintiff. The litigation concerned issues of business law, securities law, corporate law and civil procedure.

The case, In Re Weatherford International Securities Litigation, 2011 U.S. Dist. LEXIS 72569 (S.D.N.Y. July 6, 2011), involved a dispute between plaintiffs—all who wanted to be appointed as the lead plaintiff in a securities class action suit. Specifically, three pension funds each requested that the Court re-consider its decision appointing a different pension fund as lead plaintiff. They argued that the lead plaintiff had misrepresented the amount of shares it retained at the end of the class period and that the measurement of the lead plaintiff’s damages may have been improper. The Court rejected their arguments, noting that choosing the proper accounting method to measure damages is “a context-specific determination.” Therefore, the Court denied the claims of each of the plaintiffs.

In Re Weatherford demonstrates how choosing a lead plaintiff can often be a difficult and contentious task. At Tesser, Ryan & Rochman, LLP, our years of experience with business law and the intricacies of civil procedure allows us to navigate procedural issues that can arise in complex litigation.