IBEW Local No. 58 Annuity Fund v. EveryWare Global, Inc.
Plaintiffs, who purchased EveryWare securities in 2013-2014, alleged a “pump and dump” scheme by EveryWare’s principal shareholders and officers to inflate the price of EveryWare shares and then sell their EveryWare shares before prices plummeted. They claim that EveryWare’s CEO released EveryWare’s financial projections for 2013, despite actually knowing those projections to be false and misleading and, months later, told investors, with the intent to deceive, manipulate, or defraud, that EveryWare was on track to meet its projections and that when EveryWare offered a portion of its shares to investors in September 2013, and submitted a registration statement and a prospectus in connection with that offering, EveryWare’s underwriters and directors signed documents, incorporating EveryWare’s financial projections and failing to disclose material downward trends in the business. The Sixth Circuit affirmed dismissal of plaintiffs’ claims under the Securities Exchange Act of 1934 and the Securities Act of 1933. The Exchange Act claims failed because plaintiffs did not allege particularized facts giving rise to a strong inference that defendants acted with the requisite scienter; the Securities Act claims failed because plaintiffs did not allege any well-pleaded material statement or omission in the registration statement or the prospectus. View "IBEW Local No. 58 Annuity Fund v. EveryWare Global, Inc." on Justia Law