In Re Guess?, Inc. Securities Litigation

ORDER GRANTING DEFENDANTS’ MOTION TO DISMISS FOR FAILURE TO STATE A CLAIM

I. INTRODUCTION

Guess?, Inc. (“Guess”), a maker of fashion apparel, experienced financial difficulties during the 2000 calendar year. As a result, its stock value dropped and the current securities litigation was instituted against defendants Guess, Maurice Marciano, Paul Marciano, Armand Marciano and Brian Fleming. The class action complaint alleges violations of the Exchange Act, section 10(b), Securities Exchange Commission (“SEC”) Rule 10b-5, and the Exchange Act, section 20(a). Defendants’ bring the present motion to dismiss all claim for failure to state a claim under Federal Rule of Civil Procedure 12(b)(6) (“Rule 12(b)(6)”).

II. FACTUAL AND PROCEDURAL BACKGROUND

The following facts are derived from the complaint, records referenced in the complaint, or from public records properly before the Court .

Guess is primarily engaged in the business of designing, marketing and distributing casual clothing, accessories, and related consumer products. Compl. ¶ 1. It markets its clothing lines through two primary distribution channels: (1) wholesale distribution, through which Guess sells its product to…