Petzschke, et al v. Century Aluminum Co., et al

Plaintiffs alleged that the shares they purchased in Century Aluminum Company were issued under a materially false and misleading prospectus supplement which was treated as part of the company's registration statement for purposes of section 11 of the Securities Act of 1933, 15 U.S.C. 77k. The court concluded that plaintiffs' failure to plead the traceability of their shares meant that they lacked statutory standing under section 11, but failure to allege statutory standing resulted in failure to state a claim on which relief could be granted, not the absence of subject matter jurisdiction. The district court should therefore have addressed the company's motion to dismiss under Rule 12(b)(6), not Rule 12(b)(1). Notwithstanding this error, the court affirmed the dismissal under Rule 12(b)(6). View "Petzschke, et al v. Century Aluminum Co., et al" on Justia Law