Dalarne Partners, Ltd. v. Sync Research, Inc.

ORDER DISMISSING SECOND AMENDED COMPLAINT WITH PREJUDICE

I.

PROCEDURAL BACKGROUND

By minute order dated February 16, 1999, the Court dismissed plaintiffs First Amended Complaint (FAC) for failure to satisfy the pleading standards set by the Private Securities Litigation Reform Act of 1995 (“PSLRA”) in connection with actions brought under Section 10(b) of the Securities and Exchange Act. The order also dismissed plaintiffs claims against defendant Gregorio Reyes based on the FAC’s failure to allege adequately that Reyes was actively involved in the management of the defendant corporation. Because plaintiff suggested that it had gained access to information that would further support its allegations, the Court granted plaintiff leave to file a Second Amended Complaint (SAC). On March 22, 1999, the SAC was filed.

On April 21, 1999, defendants filed their original motion to dismiss the SAC. A briefing schedule was set and both parties filed additional papers in connection with that motion. However, by minute order dated July 16, 1999, the Court vacated the hearing on defendants’ motion and reset the briefing schedule in order to afford counsel the opportunity to brief the…