Dismissal of securities class action
Our attorneys obtained a significant appellate victory on behalf of longtime client Spirit AeroSystems Holdings in a securities class action against the company and four of its current and former executives. Spirit is one of the world's largest non-OEM designers and manufacturers of aerostructures for commercial aircraft.
On July 5, 2016, the Tenth Circuit affirmed Kansas federal judge Eric Melgren’s dismissal of plaintiffs’ securities class action complaint with prejudice, resulting in a complete dismissal and victory for Spirit. The panel agreed with the district court and our attorneys that plaintiffs failed to adequately plead scienter in their complaint alleging that Spirit and its executives made false and misleading statements that artificially inflated Spirit’s stock price before the company recognized a forward loss of $590 million on certain manufacturing programs in the third quarter of 2012.
“This is a significant win for Spirit, and we are absolutely delighted by the Tenth Circuit’s decision to dismiss the complaint,” said Litigation partner Phil Geraci, who argued the appeal.