In Re Secure Computing Corp. Securities Lit.

ORDER DENYING DEFENDANTS’ MOTION TO DISMISS PLAINTIFFS’ FIRST AMENDED COMPLAINT

In this class action for securities fraud, Plaintiffs allege that Defendants knowingly misrepresented to the investment community that Secure Computing Corporation was growing and increasing its earnings during the class period. Defendants move to dismiss Plaintiffs’ first amended complaint (FAC) for failure to state a claim under Rule 12(b)(6) of the Federal Rules of Civil Procedure. Plaintiffs oppose the motion. A hearing on the motion was held on February 9, 2001. Having considered the papers filed by the parties and oral argument on the motion, the Court DENIES Defendants’ motion to dismiss (Docket No. 59).

BACKGROUND

Defendant Secure Computing Corporation designs, develops, markets and sells security products and services for computer networks. See FAC at ¶ 3. Individual Defendants Jeffrey H. Waxman, Timothy P. McGurran, Patrick Regester, Gary D. Taggart, Howard Smith and Christine Hughes were officers of Secure and members of its executive committee during the relevant time period. See id. at ¶¶ 19-20. The Court found in its June 14, 2000 Order granting dismissal of Plaintiffs’ Corrected…