Federal judge dismisses claims against company, individual defendants and Crocs' auditor
DENVER, COLORADO (March 1, 2011) – A team of lawyers from Morrison & Foerster has helped leading footwear company Crocs, Inc. (NASDAQ: CROX) and a group of current and former officers and directors defeat several securities class actions against the company. An order dismissing all claims against Crocs, along with individual defendants and the company's outside auditor was issued February 28 in U.S. District Court for the District of Colorado.
U.S. District Judge Philip A. Brimmer issued a 65-page ruling dismissing plaintiffs' consolidated claims against all defendants. In his decision, Judge Brimmer found that alleged misstatements attributed to Crocs were not false or misleading and that plaintiffs failed to plead a strong inference of scienter by any of the defendants. The court held that plaintiffs' complaint failed to satisfy heightened pleading requirements under the Private Securities Reform Act of 1995. Importantly, the order does not afford plaintiffs an opportunity to amend their complaint.
The decision marks the latest in a series of successes that Morrison & Foerster achieved for Niwot, Colorado-based Crocs, including the dismissal with prejudice of a shareholder derivative action in 2008. The latest win in district court was based on the first motion to dismiss filed by Crocs and the other defendants.
The Morrison & Foerster securities litigation team for Crocs was led by Paul Friedman and Erik Olson, and included associates Stacey Sprenkel and Nicole Serfoss.