In an opinion today in a securities fraud case, Judge Engelmayer denied a class certification motion that was based on a somewhat novel theory:  the plaintiffs allege that insiders of a company called SmartHeat publicly touted a “lockup” restricting their ability to sell shares, but then secretly “unlocked” those shares, thereby causing extra shares to flood the market and depress prices. He ruled that there was insufficient evidence of the plaintiffs’ theorized cause and effect:…
Continue Reading Judge Engelmayer Rejects Class Certification Premised on Extra Shares Being “Secretly” Available and Depressing Price