New York State Teachers' Retirement Systems v. Fremont General Corp.

MEMORANDUM

Plaintiffs appeal the dismissal with prejudice of the Third Amended Consolidated Class Action Securities Complaint. We have jurisdiction under 28 U.S.C. § 1291 . We review de novo a dismissal for failure to state a claim pursuant to Federal Rule of Civil Procedure 12(b)(6). Thompson v. Paul, 547 F.3d 1055, 1058 (9th Cir.2008). We affirm.

Plaintiffs have failed to allege violations of Section 10(b) of the Securities and Exchange Act, 15 U.S.C. § 78j(b), and SEC Rule 1 Ob-5, 17 C.F.R. § 240 .10b-5 with the specificity required by the Private Securities Litigation Reform Act, 15 U.S.C. § 78u-4(b)(l) and Federal Rule of Civil Procedure 9(b). Viewing the complaint holistically, plaintiffs’ allegations of scienter fail adequately to show that each individual defendant possessed contemporaneous knowledge of undisclosed information that rendered one or more of his public statements consciously misleading. Tellabs, Inc. v. Makor Issues & Rights, Ltd., 551 U.S. 308, 324 , 127 S.Ct. 2499 , 168 L.Ed.2d 179 (2007); In re Silicon Graphics Sec. Litig., 183 F.3d 970, 985 (9th Cir.1999) partially abrogated on other grounds as recognized in South Ferry LP, No. 2 v. Killinger, 542 F.3d…