Henson & Efron Attorneys Again Prevail on Dismissal of Federal Class Action Securities Fraud Case

FOR IMMEDIATE RELEASE 

September 27, 2007, Minneapolis, MN – Henson & Efron, P.A. attorneys Joseph T. Dixon, Jr. and Wesley T. Graham won a motion to dismiss a federal securities fraud class action lawsuit on behalf of their client, a former chairman and chief executive officer of a publicly held corporation that owns and operates restaurants nationwide. The case involved federal securities fraud claims under the Securities Exchange Act, and the pleading requirements under the Private Securities Litigation Reform Act, including intent, loss causation and materiality.

While the judge had previously granted the motion to dismiss without prejudice, which gave plaintiffs a second chance to plead their case, this time the judge granted the renewed motion to dismiss the Second Amended Complaint with prejudice, barring the plaintiffs from refiling their case. In granting the motion to dismiss with prejudice, the judge recognized the plaintiffs, securities holders of the corporation, had failed to adequately plead the necessary elements of a class-action securities fraud complaint. Specifically, the judge agreed with Henson & Efron's argument that the Plaintiffs did not allege how Henson & Efron's client knew any of the alleged acts were fraudulent.

Henson & Efron, P.A., a mid-sized law firm with more than 30 attorneys, is located in Minneapolis. The firm is known for its excellence in delivering a full range of legal services to individuals and businesses of all sizes. Henson & Efron is a member of Legal Netlink Alliance, an international consortium of law firms providing integrated, cost-effective, high-quality legal services to clients around the world. More information can be found at: www.hensonefron.com.

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