Cases & Deals

Shiloh Industries wins dismissal of securities fraud class-action lawsuit filed in aftermath of accounting restatement

Clients Shiloh Industries, Inc.

Jones Day won a dismissal of a securities class-action lawsuit, prior to any discovery taking place, against Shiloh Industries, Inc., its CEO, and CFO arising from an accounting restatement in 2015 that caused its stock price to plunge. Jones Day's motion to dismiss argued that the restatement was the result of misconduct by a single low-level accounting employee, and that that employee’s state of mind—or scienter—could not be attributed to the company, its CEO, or CFO for purposes of the federal securities laws. The court accepted the argument, issuing an important decision in a developing area of the law.

Thomas v. Shiloh Industries, Inc., et al., No. 1:15-cv-7449-KMW (S.D.N.Y.)

We use cookies to deliver our online services. Details of the cookies and other tracking technologies we use and instructions on how to disable them are set out in our Cookies Policy. By using this website you consent to our use of cookies.