market at the time and the uncertainty generated by the press releases, the price of the
Company stock dropped. The disconnect between the text of the press releases, the
theories of fraud, and the allegations of wrongdoing leads to the conclusion that the
case is not about securities fraud. Rather, it is about an attempt to find securities fraud
after the Company’s stock price fell upon news that it was being investigated by the
SEC and was the subject of a grand jury subpoena. The case brings to mind the Latin
phrase post hoc ergo procter hoc. Simply because the stock dropped in price does not
mean that the drop was the result of securities fraud.
It is for these reasons that defendants’ motion to dismiss have been granted and
the case dismissed.
Dated: November 10, 2009
s/ Avern Cohn AVERN COHN UNITED STATES DISTRICT JUDGE
I hereby certify that a copy of the foregoing document was mailed to the attorneys of record on this date, November 10, 2009, by electronic and/or ordinary mail.
s/ Julie Owens Case Manager, (313) 234-5160