Orrick Team Secures Dismissal of Securities Fraud Class Action

May.03.2019

An Orrick white collar and securities litigation team successfully represented the former Chief Financial Officer of General Cable in obtaining the dismissal with prejudice of all claims asserted against him in a securities fraud class action in the United States District Court for the Eastern District of Kentucky.

The plaintiff filed suit in early 2017, shortly after General Cable entered into settlements with the Department of Justice and the Securities and Exchange Commission to resolve allegations that the company committed violations of the Foreign Corrupt Practices Act.  The plaintiff in the securities class action alleged that the company and certain executives committed securities fraud in connection with statements about the company’s FCPA compliance program and its internal controls over financial reporting.

On April 30, 2019, U.S. District Judge William O. Bertelsman issued an order granting our team’s motion to dismiss in its entirety, agreeing with our argument that the plaintiff failed to adequately allege that our client acted with scienter.  The court also entered a final judgment in favor of our client, dismissing all of the plaintiff’s claims with prejudice.

The Orrick team included Rich MorvilloDaniel Nathan, Kevin Askew and Stephanie Albrecht.