In Re Fritz Companies Securities Litigation

MEMORANDUM AND ORDER

Plaintiffs’ Motion for Leave to Amend Complaint

Plaintiffs bring this shareholder class action against Fritz Companies, Inc. and various individual officers and directors (collectively “Fritz”). The complaint contains claims of securities fraud under Section 10(b) of the Securities Exchange Act of 1934 (“SEA”), 15 U.S.C. § 783 (b), related Rule 10-5, and controlling persons allegations under Section 20 of the SEA, 15 U.S.C. § 78t(a). After allowing plaintiffs to file First and Second Amended Complaints in 1997, this court dismissed the action with prejudice for failure to state a claim. In re Fritz Co. Sec. Litig., No. C-96-2712 (N.D.Cal. March 5, 1998) (Patel, J.). In 1999, the Ninth Circuit summarily vacated the order for reconsideration in light of its decision in Silicon Graphics Inc. Sec. Litig., 183 F.3d 970 (9th Cir.1999). Now before the court is plaintiffs’ motion for leave to amend the complaint pursuant to Rule 15 of the Federal Rules of Civil Procedure. Having considered the arguments of the parties, and for the reasons set forth below, the court rules as follows.

BACKGROUND

Fritz was a transportation logistics business in San Francisco that…