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SD&M Secures Dismissal of All Claims Against Bank Directors in Securities Fraud Class Action

  • calendar iconMarch 30, 2011
  • News iconNews

A team of SD&M attorneys secured the dismissal of all claims against its clients in a securities fraud class action filed against Franklin Bank Corp.’s directors, officers and outside auditors. SD&M represented all of the Bank’s directors.

The class plaintiffs alleged that the directors lied to shareholders to artificially raise the Bank’s stock price and keep the Bank afloat. A Texas federal judge dismissed the claims with prejudice, concluding that the alleged misrepresentations were too “broad and generalized” to be actionable. The judge also determined that the plaintiffs failed to prove that some of the alleged misrepresentations were material or that the directors knew that other alleged misrepresentations were untrue.

The SD&M team on the case included Cindy Connolly, Abe Kuczaj, and Steve McConnico.

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