In Re Secure Computing Corp. Securities Litigation

ORDER GRANTING DEFENDANTS’ MOTION TO DISMISS PLAINTIFFS’ CORRECTED CONSOLIDATED COMPLAINT AND GRANTING PLAINTIFFS LEAVE TO AMEND

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’ corrected consolidated complaint for failure to state a claim. Plaintiffs oppose the motion. A hearing on the motion was held on June 9, 2000. Having considered the papers filed by the parties and oral argument on the motion, the Court dismisses Plaintiffs’ corrected consolidated complaint, with leave to amend.

BACKGROUND

Defendant Secure Computing Corporation designs, develops, markets and sells a variety of security products and services for computer networks. See Corrected Consolidated Complaint (CCC) ¶¶3, 20. 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. ¶¶ 21-22. Plaintiffs allege that all six…