Today, the Second Circuit reversed dismissal of a complaint alleging that a "group" of a corporation’s insiders — an individual and a company — must disgorge the $4.25 million in short-swing profits that the individual reaped from buying and selling the corporation’s securities within a six-month period. The court held that the district court gave improper weight to SEC filings that denied group status. Roth v. Jennings, No. 06-0784-cv (2d Cir. June 6, 2007) (available at www.ca2.uscourts.gov).
The decision represents one of the first, if not the first, applications of the Supreme Court’s new pleading standard in Bell Atlantic Co. v. Twombly.
You, gentle reader, may wonder why Blawgletter doesn’t always provide a direct link to Second Circuit decisions. Wonder no more! The Second Circuit’s website doesn’t allow direct linking; you have to go to the main page, click on Decisions, then click on Today’s under Opinions, and then click on the link to the opinion you want to read.