SCOPE IND. v. Skadden, Arps, Slate, Meagher & Flom

MEMORANDUM OPINION AND ORDER

This is an action for malicious prosecution based on defendants’ conduct as counsel for plaintiff in Avnet, Inc. v. Scope Industries, 499 F.Supp. 1121 (S.D.N.Y. 1980) (the “underlying action”). In the underlying action, Avnet sued to secure additional public disclosures under the Securities Exchange Act of 1934 (the “Exchange Act”), alleging violations of sections 13(d), 15 U.S.C. § 78m(d) (requiring certain public disclosures), 14(a), 15 U.S.C. § 78n(a) (regulating proxy solicitation) and 10(b), 15 U.S.C. § 78j(b) (proscribing manipulative conduct in securities transactions). The district court granted Scope’s motion to dismiss in part, and denied Avnet’s motion for a preliminary injunction. In so ruling, the district court held that additional disclosures by Scope in its second amendment to its Schedule 13D, which was filed after the underlying action was commenced, mooted substantial portions of Avnet’s § 13(d) claim. Id. The Second Circuit affirmed, noting that the issue of Scope’s status as an unregistered investment company, see 15 U.S.C. § 80a-l el seq., remained in controversy. (Unpublished memo. No. 80-4048, Apr. 24, 1981.) Thereafter, the…