In Re AST Research Securities Litigation
Opinion
Opinion
Wilson, J.
ORDER GRANTING IN PART, AND DENYING IN PART, DEFENDANTS’ MOTION TO DISMISS AND TO STRIKE
TO ALL PARTIES AND THEIR ATTORNEYS OF RECORD:
On December 21, 1994, the Court directed plaintiffs to file an amended complaint combining the remaining Brenner claims with the related Marschall/Jones Complaint into a single consolidated action. Defendants’ present motion concerns new insider trading claims and other new issues raised in the Second Amended Complaint filed by plaintiffs on January 6, 1995. For the reasons stated herein, the Court hereby GRANTS defendants’ Motion to Dismiss and Strike in part and DENIES the Motion in part.
Analysis.
Insider Trading Claims.
To maintain a private cause of action for insider trading against defendants, plaintiffs must establish that “contemporaneous” trades took place with defendants. Securities Exchange Act of 1934 § 20A(a), 15 U.S.C. § 78t-l(a) (1991). The Court previously ruled that plaintiff Brenner’s purchase of January 25, 1994 was “contemporaneous” only with the sale the same day by defendant Ottaviano, and the sale one day prior by defendant Szeto. In paragraph 166 of the new Second Amended Complaint, plaintiffs allege sales on inside…