Securities Litigation: Possis Medical

Cornelia I. Crowell GST Trust v. Possis Medical, Inc. et al
USDC Minnesota
Disclosure
Medical Devices; Confidential Sources

Company background

Litigation background

Lead plaintiffs

Complaint

Motion to dismiss

Opinion

The purpose of [the Reform Act's] heightened pleading
requirement was . . . to put an end to the practice of pleading fraud by hindsight. Id. at 742 (internal quotations omitted). The Act performs its purpose well here; this case is a textbook example of fraud by hindsight. Plaintiffs have failed to plead facts showing a misrepresentation of material fact or giving rise to a strong inference of scienter. For that reason, the complaint fails to state a claim upon which relief may be granted under the pleading requirements of the PSLRA.
Plaintiffs request leave to amend the complaint, but there is no reasonable basis upon which to conclude that this complaints defects can be cured. Accordingly, it would be futile to grant leave to amend. The complaint is therefore dismissed with prejudice. See K-Tel, 300 F.3d at 899.
For all of the foregoing reasons, IT IS ORDERED THAT:
Defendants motion to dismiss the complaint... is granted. Plaintiffs Amended Complaint is dismissed with prejudice.

Lead plaintiff