Securities Fraud
The United States District Court for the District of New Jersey dismissed the complaints against the CEO, CFO, auditing firm, inside directors, outside directors, and underwriter defendants due to the lack of specific allegations that each had knowledge of the fraud which took place. The court held that even though several customers and employees had pleaded guilty to criminal informations charging securities fraud, and extensive documentary evidence of the fraud was produced by the plaintiffs, there was no information presented that showed any of the above executives had definitive knowledge of the fraud.
