Second Circuit Refuses to Reinstate Securities Class Action Against McGraw Hill
Cahill prevailed on behalf of McGraw Hill and named individual defendants in turning back plaintiffs’ bid to revive putative class action securities fraud claims.
Plaintiffs alleged violations of the federal securities laws in connection with the sale of McGraw-Hill stock. In 2012, the district court dismissed all claims against defendants, and the Second Circuit affirmed that dismissal. Subsequently, plaintiffs sought relief from the judgment against them on the basis of so-called “newly discovered evidence.” The district court rejected plaintiffs’ request to reinstate the claims. On September 8, 2014, the Second Circuit again affirmed, holding that the challenged statements were “too general to cause a reasonable investor to rely upon them,” and that supposed “new evidence” relating to ratings surveillance failed to demonstrate the falsity of defendants’ public statements.