Local 731 v. Diodes, Inc.
Plaintiff, a putative class of purchasers of Diodes common stock, filed suit alleging that Diodes and its officers committed securities law violations. Despite publicly admitting that labor problems existed at its Shanghai production facility, and accurately predicting the impact of the problems on its quarterly financial results, Diodes is alleged to have omitted significant information about the extent and causes of the problems. The district court granted Diodes' motion to dismiss the complaint for failure to state a claim under the heightened pleading requirements of the Private Securities Litigation Reform Act (PSLRA), 15 U.S.C. 78u-4. The court affirmed the judgment, concluding that plaintiff's amended complaint failed to plead with particularity facts giving rise to a strong inference of scienter on the part of defendants. View "Local 731 v. Diodes, Inc." on Justia Law