Haynes and Boone Obtains Denial of Class Certification and Summary Judgment in Securities Case


On November 13, 2007, Haynes and Boone obtained a significant securities litigation victory on behalf of our client Flowserve Corporation. In a lengthy and comprehensive opinion, Judge Boyle of the United States District Court for the Northern District of Texas denied class certification in a federal securities action filed against Flowserve and other Defendants, concluding that the Plaintiffs could not demonstrate loss causation on their Section 10(b) and Rule 10b-5 claims. 

This case is one of the first district court decisions to apply the Fifth Circuit’s recent decision in Oscar Private Equity Investments v. Allegiance Telecom, Inc., 487 F.3d 261 (5th Cir. 2007), which requires plaintiffs to demonstrate loss causation at the class certification stage by a preponderance of the admissible evidence.

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