In Re Accuray, Inc. Securities Litigation
Opinion
Opinion
Wilken, J.
ORDER GRANTING DEFENDANTS’ MOTION TO DISMISS
Defendants Accuray, Euan S. Thomson, Wayne Wu, Robert S. Weiss, Robert E. McNamara, John R. Adler, Jr., Wade B. Hampton and Ted Tu move to dismiss the claims in this securities fraud action. Lead Plaintiffs Zhengxu He and City of Brockton Retirement System oppose the motion. The matter was heard on August 12, 2010. Having considered all of the papers filed by the parties and oral argument on the motion, the Court grants Defendants’ motion to dismiss and grants leave to amend.
BACKGROUND
Plaintiffs purchased or acquired Aceuray securities at some point between Accuray’s Initial Public Offering (IPO) on February 7, 2007 and August 19, 2008 (Class Period).
Defendant Aceuray designs, develops and sells the CyberKnife, an image-guided robotic radiosurgery system designed to treat solid tumors. The CyberKnife is Accuray’s sole product. Aceuray generates revenue by selling the CyberKnife system and by providing ongoing services and upgrades to customers following installation.
Defendant Thomson is Accuray’s Chief Executive Officer and has been on the Board of Directors since March, 2002. Defendant McNamara was Accuray’s Senior Vice…