Thursday, August 03, 2006

Planes, Trains, and Efficient Markets

Earlier this week, in the Bombardier class action, Judge Shira A. Scheindlin denied plaintiff's motion for class certification, finding that the putative class was not entitled to the efficient markets presumption, and as a result, common issues did not predominate the litigation.

A copy of the opinion is available here.

The lead plaintiff in the Bombardier litigation is the Teamsters Local 445 Freight Division Pension Fund and lead counsel is Schoengold Sporn Laitman & Lometti, P.C.

Bombardier, Inc. (TSE: BBD) is a Canadian based manufacturer of regional aircraft, business jets, and rail transportation equipment.

True to form, Judge Scheindlin has provided a thorough analysis of the standards for class certification and a detailed review of the efficient markets theory. I have previously blogged about Judge Scheindlin's thorough securities litigation opinions, here.

Alert readers may recall that earlier in the Bombardier litigation, Judge Scheindlin required the lead plaintiff, after filing an amended complaint that both expanded the class period and added additional securities to the class definition, to issue a new press release and restart the 60 day period for investors to move for appointment as a lead plaintiff.

The PSLRA Nugget had previously blogged about the reopened lead plaintiff period, here.

Daily trivia - Bombardier was founded by Joseph-Armand Bombardier, the inventor of the snowmobile.

No comments: