Komie

MEMORANDUM **

Steven J. Komie, Arthur G. Mackey, and Hyman Sehirtzer (hereinafter “Plaintiffs”) brought a purported class action in the United States District Court for the District of Nevada against Deloitte & Touche, LLP (“Deloitte”), Saxton, Inc. (“Saxton”), 1 and individual Saxton officers James C. Saxton, Kirk Scherer, and Melody J. Sullivan, alleging violations of sections 10(b) and 20(a) of the Securities and Exchange Act of 1934. 15 U.S.C. §§ 78j(b), 78t(a) (2000). The Plaintiffs’ amended complaint (the “Complaint”) was brought on behalf of persons or entities who bought Saxton common stock during the period from May 15, 1998, through June 14, 2000; however, no class was ever certified. The district court dismissed the Complaint with prejudice, concluding that the Complaint failed to plead particular facts raising a strong inference of scienter and that granting leave to amend the Complaint would be futile.

Plaintiffs appeal the district court’s dismissal of the Complaint and denial of leave to amend. With respect to Plaintiffs’ claims against Deloitte, we affirm the district court’s dismissal with prejudice. As to Plaintiffs’ claims against the individual Saxton…