Court of Appeals to Lawyers: Truth Matters – And We Mean It

[Valin]

The Foundry:

 

 

David S. Addington

April 5, 2013

 

The U.S. Court of Appeals for the Seventh Circuit recently sent a strong message to lawyers: Do your homework before you make assertions in court, or the court may impose sanctions against you.

 

The court’s action should make less-than-careful lawyers think twice before they make unsupported securities fraud claims in court to try to gouge settlement money out of an innocent company when the cost of a defense in court would be more than the cost to settle.

 

In City of Livonia Employees’ Retirement System et al. v. The Boeing Company (March 26, 2013), the lawyers for the city’s retirement system claimed that, when Boeing leaders announced that a Boeing 787-8 jet model was headed in a few months for a scheduled first test flight, the leaders wrongfully concealed their knowledge that the model’s wings had failed a stress test. The retirement system had purchased company stock that later dropped in market value after the company announced that it would cancel the scheduled first flight. The retirement system sought monetary damages from Boeing under federal securities laws for the stock loss.

 

(Snip)

 

[Geee]

Yeah!!!