In Re Leapfrog Enterprises, Inc. Securities Lit.

ORDER GRANTING DEFENDANTS’ MOTIONS TO DISMISS

Plaintiffs’ Second Amended Consolidated Class Action Complaint (“SAC”) alleges violations of sections 10(b) and 20(a) of the Securities Exchange Act of 1934 against defendant LeapFrog Enterprises, Inc. (“LeapFrog”) and four of LeapFrog’s officers or former officers. LeapFrog moves to dismiss the SAC for failure to state a claim pursuant to Fed.R.Civ.P. 12(b)(6). The individually-named officers of LeapFrog filed a separate motion also seeking to dismiss the SAC for failure to state a claim. LeapFrog and the individual defendants join in each other’s motion. Plaintiffs oppose the motions. Plaintiffs also seek leave to amend in the event defendants’ motions are granted. The court has read the moving and responding papers and considered the arguments of counsel. For the reasons set forth below, the court GRANTS defendants’ motions to dismiss. Plaintiffs have twenty (20) days from the date of this order to amend their complaint.

I. BACKGROUND

A. The Parties and Claims

Lead plaintiffs Parnassus Fund and the Parnassus Equity Income Fund (together, “plaintiffs”) filed a securities class action individually and on behalf of a class of…