District Court Dismisses Securities Class Action
- Tuesday, 08 November 2016 03:29
- Written by maronson
On September 21, 2016, Wilson Sonsini Goodrich & Rosati secured a dismissal with prejudice on behalf of root9B Technologies, a provider of cybersecurity products and services, and its CEO and former CFO in a securities class action in the U.S. District Court for the District of Colorado. The plaintiff’s complaint alleged that root9B had made false statements regarding its proprietary hardware and software and falsely claimed that the source of a cyberattack it thwarted was the infamous Russian hacking group called “Sofacy” or “APT28.” The plaintiff’s allegations were based on an article published on SeekingAlpha by an anonymous author called “Pump Stopper,” a prolific short seller, and an article published by Brian Krebs, a cybersecurity journalist.
The defendants filed a motion to dismiss, challenging the sufficiency of the plaintiff’s allegations that the challenged statements were false or misleading, that the defendant acted with the required state of mind to support allegations of fraud (called “scienter”), and that the plaintiff had adequately alleged loss causation with respect to any challenged statement. The magistrate judge performing an initial review of the defendants’ motion to dismiss found that several of the plaintiff’s allegations were sufficient to state claims for securities fraud and issued a recommendation denying the defendants’ motion to dismiss. On behalf of the defendants, WSGR filed objections challenging the magistrate’s recommendation with the chief judge of the district court. Ultimately, the chief judge declined to adopt the magistrate judge’s recommendations and instead granted dismissal of all of the plaintiff’s claims without leave to amend. In its decision, the court held that the plaintiff had failed to plead sufficient facts demonstrating that any challenged statements were false or misleading. The court also expressed doubts that the plaintiff’s scienter and loss causation allegations were sufficient to state a claim.
The WSGR team representing root9B Technologies in the matter included partners Nicki Locker
and Steve Guggenheim
and associates Joni Ostler
, Evan Seite
, and Drew Liming
For more information, please refer to the court’s opinion
- Monday, 07 November 2016 21:23
- Written by maronson
Brian was admitted to the State Bar of California in 1985 and has been in state trial courts, in administrative hearings, before arbitration panels, in bankruptcy courts, in federal district courts, and before appellate courts ever since.
Before forming his own firm, he practiced with a number of small and large firms including Wilson, Sonsini Goodrich & Rosati in Palo Alto, McKenna & Fitting in San Francisco, and Cohen, England & Whitfield in Ventura County.
- J.D. University of California at Davis, 1985
- B.A. University of California at Davis (Economics), 1982
- State Bar of California 1985
- U.S. District Court, Central District of California 1985
- U.S. District Court, Northern District of California 1986
- U.S. District Court, Eastern District of California 1989
- U.S. Ninth Circuit Court of Appeals 1993
Professional and Community Associations
- National Association of Consumer Bankruptcy Attorneys (website)
- Association of Business Trial Lawyers, Northern California Chapter
- California State Bar Committee for the Administration of Justice (2008-2010)
- San Mateo County Bar Association
- Peninsula Executives Association (website)
- San Mateo County Community Colleges Foundation Board of Directors (website)
(for a complete list of Brian’s publications, visit The Desq
- Bankrupt and Loving It, The Docket, Vol. 48, No. 1 (San Mateo County Bar Ass’n 2012)(pdf)
Lorrie Murphy is LOBI’s chief paralegal and secretary. She is a certified paralegal and has been working with Brian Irion for over 10 years.
Laura Knapp is the office manager and bookkeeper for LOBI. She maintains the books and records of client funds, invoices and other financial records.