Plevy

Plevy v. Haggerty

Good Law

38 F. Supp. 2d 816·1998 WL 951694·51 Fed. R. Serv. 1491·1998 U.S. Dist. LEXIS 22064

United States District Court, Central District of CaliforniaAugust 21, 1998CV 97-9200 SVW, CV 98-0890 SVW, CV 98-0920 SVW, CV 98-0921 SVW, CV 98-0926 SVW, CV 98-1062 SVW, CV 98-1465 SVW and CV 98-1881 SVWCalifornia8,767 words

Opinion

Wilson, J.

ORDER DISMISSING CONSOLIDATED AMENDED COMPLAINT WITH PREJUDICE

I. BACKGROUND

This case is a class action brought by certain shareholders of Western Digital Corporation (‘WDC”) against WDC and several of its officers and directors. Plaintiffs allege that Defendants committed federal securities fraud in violation of §§ 10(b) and 20(a) of the Securities Exchange Act of 1934 (“1934 Act”) and Rule 10b-5 of the Securities Exchange Commission (“SEC”) regulations promulgated thereunder. WDC manufactures hard disk drives (“HDDs”), which are used in computers to store program applications and other electronic files. WDC is the third largest HDD manufacturer in the world, second only to Seagate and Quantum. WDC and Seagate trade on the New York Stock Exchange (“NYSE”), while Quantum trades on the NASDAQ.

Plaintiffs allege that during the Class Period (July 25, 1996 to January 29, 1998), Defendants engaged in conduct that was designed to, and did, artificially inflate the market price of WDC stock. (Consolidated Amended Complaint (“CAC”), ¶ 1). At the start of the Class Period, WDC stock traded at 13 3/8. It rose to a high of 53 on August 25, 1997, and then fell to a low of 14 on December…

Sign in to read the full opinion

Create a free account to read the complete opinion text, citation history, and good-law status for this case.