SOURCECORP securities litigation dismissal upheld by 5th Circuit
Clients SOURCECORP, Inc.
Jones Day represented SOURCECORP, Inc., a company subsidiary, and two of its officers in a consolidated securities lawsuit filed in the Northern District of Texas federal court following an October 2004 disclosure regarding an internal investigation of revenue recognition practices at the company subsidiary and a subsequent restatement of corporate consolidated financial results. The court granted our motion to dismiss, finding that the complaint failed to allege facts giving rise to a strong inference of scienter and dismissing those claims with prejudice, but denied the motion to dismiss filed by the remaining defendant-former owner of the subsidiary, who was separately represented. The plaintiffs appealed the district court's granting of our motion to dismiss, and the Fifth Circuit affirmed that judgment in an opinion issued a week after oral argument.
SOURCECORP, Inc. Securities Litigation, No. 3:04-CV-2351 (N.D. Tex.), No. 06-11368 (5th Cir.)