Options Backdating Complaint Dismissed With Prejudice by California District Court

November 5, 2007- LAWFUEL – The Law Firm Newswire – A California company represented by Schulte Roth & Zabel LLP scored a first-round knockout victory when a federal district judge in Los Angeles dismissed—with prejudice—a class action complaint alleging that it and several of its senior officers and directors had illegally “backdated” stock option grants. The company, Hansen Natural Corporation (“Hansen”), and the individual defendants filed a motion to dismiss the class action complaint on the grounds that the plaintiff failed adequately to plead his claim under federal law.

The U.S. District Court for the District of California on Oct. 16 not only granted the motion to dismiss, but also denied plaintiff’s request for leave to amend his complaint. Rather than allow the case to linger, with attendant expense and burden to the defendants, the court’s ruling thus brings the litigation to a complete and early end.

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