NEW YORK, July29, 2004 Read today’s legal news, law firm announcements and legal research in LAWFUEL In a securities fraud case brought by
Milberg Weiss Bershad & Schulman LLP against Baxter International and others,
the United States Court of Appeals for the Seventh Circuit in a July 29th 2004
opinion authored by the Honorable Judge Frank Easterbrook reversed the
dismissal of a securities fraud class action complaint and remanded to the
Northern District of Illinois Asher v. Baxter International, Inc., No.03-3189
(7th Cir. July 29, 2004), where the case was filed.
This action arises from claims that Baxter misrepresented its financial
trends and performance throughout the class period in the face of growing,
non-public evidence of constraints on and problems in its business. The
District Court dismissed, holding that the challenged statements were of a
forward-looking nature and interpreted those statements to be protected by the
“Safe Harbor” provisions in the federal securities laws. In a decision of
first impression in the Seventh Circuit, the Court of Appeals held that even
firm-specific cautionary statements are inadequate if they do not reflect the
knowledge of the corporation as to what risks are actually likely to affect
future results. The Seventh Circuit thus held that determining whether
cautionary statements provide an adequate safe harbor against liability is an
issue of fact which ordinarily cannot be decided at the pleadings stage. It
thus offers protection against the argument made by some defendants that the
“Safe Harbor” can prevent scrutiny into statements which are knowingly false
if accompanied by some cautionary language.
Milberg Weiss led and argued this appeal. Barry Weprin, who argued for
the plaintiffs, said, “We are very pleased with this decision and believe that
it will not only advance this litigation but prove highly persuasive
throughout the Federal Courts.”
Milberg Weiss Bershad & Schulman LLP is a 110-lawyer firm with main
headquarters in New York City and other offices nationwide, including Boca
Raton, FL, Wilmington, DE, Washington, D.C., Seattle, WA and Los Angeles, CA.
The firm that Melvyn I. Weiss and Lawrence Milberg founded in 1965 will
celebrate its 40th anniversary next year. The firm has been actively engaged
in commercial litigation, emphasizing securities, consumer, insurance,
healthcare, corporate, human rights, employment discrimination and antitrust
class actions.
The firm’s reputation for excellence has been recognized on repeated
occasions by courts that have appointed it to major positions in complex
multi-district or consolidated litigations. Milberg Weiss has successfully
prosecuted thousands of class action lawsuits, has taken a lead role in
numerous complex litigations on behalf of defrauded investors, consumers and
companies, as well as victims of World War II human rights violations, and has
been responsible for more than $45 billion in recoveries. For more
information, please visit http://www.milbergweiss.com
