Opinion
11 Civ. 5484 (MGC) 09 MD 2072 (MGC)
05-02-2012
LIBERTY MUTUAL INSURANCE COMPANY, LIBERTY MUTUAL FIRE INSURANCE COMPANY, PEERLESS INSURANCE COMPANY, SAFECO CORPORATION, AND LIBERTY LIFE ASSURANCE COMPANY OF BOSTON, Plaintiffs, v. GOLDMAN, SACHS & CO., Defendant.
ROBINS, KAPLAN, MILLER & CIRESI L.L.P. Attorneys for Plaintiffs Minneapolis, Minnesota 55402 By: Thomas B. Hatch, Esq. James R. Safley, Esq. SIMPSON THACHER & BARTLETT LLP Attorneys for Defendant By: Jonathan K. Youngwood, Esq. Craig S. Waldman, Esq.
MEMORANDUM OPINION AND ORDER
APPEARANCES:
ROBINS, KAPLAN, MILLER & CIRESI L.L.P.
Attorneys for Plaintiffs
Minneapolis, Minnesota 55402
By: Thomas B. Hatch, Esq.
James R. Safley, Esq.
SIMPSON THACHER & BARTLETT LLP
Attorneys for Defendant
By: Jonathan K. Youngwood, Esq.
Craig S. Waldman, Esq.
Cedarbaum, J.
Defendant's motion to dismiss plaintiffs' federal securities fraud claims under Section 10(b) of the Securities Exchange Act of 1934, 15 U.S.C. § 78j(b), and Rule 10b-5, 17 C.F.R. § 240.10b-5, is granted with leave to file a Second Amended Complaint by June 5, 2012. A Second Amended Complaint should allege sufficient facts to make it plausible that defendant had ultimate authority over the alleged misrepresentations in the Series Z Offering Circular. In addition, a Second Amended Complaint should state with particularity the facts that show that defendant intentionally misrepresented its knowledge of the capitalization of Freddie Mac or the facts that show that defendant recklessly ignored such knowledge. I reserve decision on defendant's motion to dismiss plaintiffs' state law claims.
SO ORDERED. Dated: New York, New York
May 2, 2012
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MIRIAM GOLDMAN CEDARBAUM
United States District Judge