July 25, 2016
On July 22, 2016, Weil achieved a decisive win for VOXX International Corporation and its CEO and CFO in a securities fraud class action pending in the U.S. District Court for the Eastern District of New York, when Judge Joanna Seybert dismissed all of plaintiff’s claims.
The plaintiff in this action alleged, largely on the basis of statements made by a confidential witness, that VOXX made false or misleading statements regarding the financial performance of VOXX’s “premium audio” segment, as well as the value of goodwill and other intangible assets. Agreeing with Weil’s arguments, the Court granted VOXX’s motion to dismiss, ruling in a 27-page opinion that the complaint failed to plead any actionable false or misleading statements. In particular, the Court held that the statements and opinions attributed to plaintiff’s confidential witness – allegedly a former VOXX employee – “are too vague to form the basis of a fraud claim”, and that plaintiff’s allegations regarding intangible assets failed to meet the steep requirements regarding misstatements of opinion enshrined in the U.S. Supreme Court’s recent Omnicare decision. Plaintiffs were given 60 days to file a second amended complaint if they choose.
The Weil team was led by John Neuwirth, the Co-Head of Weil’s Securities Litigation practice, and included partner Caroline Zalka and associates Melanie Conroy, Raquel Kellert, Amanda Pooler, Jonnah Hollander, and Genevieve Feng.