In re Itel Securities Litigation

OPINION AND ORDER

This action is before the Court on plaintiffs’ motion to certify certain proposed classes of defendants.

Past and present shareholders of Itel Corporation bring the instant action against *107 Itel Corporation; certain officers and directors of Itel; Peat, Marwick, Mitchell & Co., Itel’s accountants; and the investment bankers who acted as the underwriters of two Itel public security offerings in 1978. The Consolidated Amended Supplemental Complaint 1 alleges violations of §§ 11, 12 and 15 of the Securities Act of 1933 (15 U.S.C. §§ 77k, 77l, 77o), violations of §§ 10(b) and 20 of the Securities and Exchange Act of 1934 (15 U.S.C. §§ 78j(b), 78t) and Rule 10b-5 ( 17 C.F.R. § 240.10 (b)-5), and violations of California corporate securities laws. The complaint also alleges causes of action for common law fraud and deceit and negligence.

Before being assigned this case, another judge of the court ordered that “[t]his action shall be maintained as a class action on behalf of a class of plaintiffs consisting of all persons, except defendants, who purchased the securities of Itel during the period from May 25, 1977 through August 6, 1979, inclusive.” (Order re…