L-3 Communications Investors Defeat Motion to Dismiss
In an order issued on March 30, 2016, the Honorable Valerie Caproni of the Southern District of New York denied defendants’ motion to dismiss in a securities class action against L-3 Communications Holdings, Inc. (“L-3”), holding that lead plaintiffs adequately pled violations of §10(b) and §20(a) of the Securities Exchange Act of 1934. In her opinion, Judge Caproni ruled that plaintiffs “adequately allege scienter and materiality as to L-3.”
The case alleges that L-3 issued materially false and misleading statements regarding the company’s financial performance and future prospects and failed to disclose adverse facts. L-3 is a prime contractor in aerospace systems and national security solutions and a leading provider of a broad range of communication and electronic systems and products used on military and commercial platforms.
Patel v. L-3 Communications Holdings, Inc., No. 1:14-cv-06038-VEC, Memorandum Opinion & Order (S.D.N.Y. Mar. 30, 2016).