In Re Infonet Services Corp. Securities Litigation

ORDER GRANTING DEFENDANTS INFONET SERVICES CORP., JOSE A. CALLAZO, AKBAR H. FIRDOSY, ERIC DE JONG, MORGAN EKBERG, MASAO KOJIMA, JOSEPH NANCOZ, RAFAEL SA-GRARIO, AND DOUGLAS CAMPBELL’S MOTION TO DISMISS

I. INTRODUCTION

On December 16, 1999, Infonet Services Corporation made an initial public offering (“IPO”) 0f its Class B common stock. Since the IPO, Infonet’s initial stock price of $21 has declined significantly. Plaintiffs allege that the drop in Infonet’s stock price was caused by problems arising out of Infonet’s management of AT & T Uni-source Communications Services (“AUCS”). Plaintiffs assert that Defendants knew about these problems prior to the IPO, but fraudulently concealed this information both during and shortly after the IPO in an effort to inflate the price of Infonet’s publicly traded stock. As a result, Plaintiffs brought the instant class action against Infonet, its directors, the underwriters who were involved with In-fonet’s IPO, and various foreign telecommunications companies that owned shares of Infonet. The Plaintiff Class consists of all purchasers of the publicly-traded securities of Infonet from December 16, 1999, the day of Infonet’s IPO, through…