October.28.2016
An Orrick securities litigation team successfully represented client Appliance Recycling Centers of America (“ARCA”) and its directors and officers in obtaining the dismissal with prejudice of a securities fraud class action in the United States District Court for the Central District of California. ARCA is a leading provider of appliance retailing and recycling services.
Led by partner Michael Tu, our team persuaded the U.S. District Court to dismiss successive amended complaints alleging securities fraud in connection with ARCA’s restatement of its financial statements for several years in connection with a sales and use tax issue concerning ARCA’s appliance replacement sales in California during 2011-2013. On October 21, 2016, U.S. District Judge John A. Kronstadt entered final judgment and dismissal of all claims in the lawsuit with prejudice.
No payment or any other consideration was paid by ARCA or its officers in connection with the dismissal of the lawsuit, which was originally filed by the plaintiff in March 2015, and sought to pursue claims against a putative class consisting of purchasers of the Company's common stock between March 15, 2012 and February 11, 2015.
In addition to Michael, who is based in our Los Angeles office, the Orrick team included partner Mark Wine and associates Kevin Askew and Michelle Van Oppen.