Thursday, September 3, 2009

Carrie Cox's Name Comes Up, Again. . . . Ignominiously


. . .This time, in the opinion Judge Cavanaugh issued this afternoon, in the ENHANCE federal securities law putative class action litigation, filed under the case name Manson (Case No. 08-397). In this afternoon's opinion, the Court pointed out that the plaintiffs had at least pled a good insider trading case against Ms. Cox -- that language appears immediately below (from page 11 of the PDF File):

. . . .Plaintiffs have adequately stated a claim under Section 20A. First, the Court has already held that the Complaint properly alleges a predicate violation of Section 10(b) against both Cox and Schering and a violation of Section 20(a) against Cox. Additionally, with respect to Cox, the Complaint pleads with particularity that Cox sold stock options and common stock valued at over $28 million while possessing material, non-public information about the ENHANCE study results. See 15 U.S.C. § 78t-1(a). With respect to Schering, the Court finds that the Complaint states a viable claim for “tipping” because it alleges that Schering communicated the results of the ENHANCE study to Cox and other company executives at certain meetings while failing to disclose that information to investors. See 15 U.S.C. § 78t-1(c). Accordingly, the Exchange Act Defendants’ motion to dismiss the Section 20A claims against Cox and Schering-Plough is also denied. . . .

This one's going to get woolier, before it's shorn.

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