ATLANTA (September 29, 2009) – Sutherland Asbill and Brennan LLP secured a victory in a securities fraud class action law suit on behalf of SunTrust Banks, Inc. and SunTrust Robinson Humphrey, Inc. in a decision handed down on September 24, 2009, by the federal district court in Atlanta. The Court not only found in favor of SunTrust and dismissed the case on all counts, but also denied leave to amend, closing the case file completely.
“We are extremely satisfied with the result. This case was one of the first auction rate securities class action suits to be filed, and one of the few significant ARS class actions filed outside of the Southern District of New York," said S. Lawrence Polk, partner and member of Sutherland’s Litigation Practice Group. “The Court analyzed the case carefully and correctly. This represents a complete victory in favor of SunTrust."
The suit, Case No. 1:08-cv-01287-TWT, was filed in the U.S. District Court for the Northern District of Georgia against SunTrust Banks, Inc. and SunTrust Robinson Humphrey, Inc. by Martin Zisholtz and Michael Maguire on behalf of purchasers of auction rate securities (ARS). The suit alleged failure to disclose the nature of ARS investments and markets established to auction these investments. Mr. Zisholtz and Mr. Maguire filed this case on behalf of themselves and other investors who purchased ARS from SunTrust from April 1, 2003, through February 13, 2008.
“The Plaintiffs’ allegations about manipulative auction practices do not meet the heightened pleading requirements applicable to securities fraud cases," said U.S. District Judge Thomas W. Thrash, Jr., in his ruling.
SunTrust Banks, Inc. and SunTrust Robinson Humphrey, Inc. were represented by Sutherland attorneys Lawrence Polk and Drew D. Dropkin.
To view a copy of the judge’s ruling on-line, click here.
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Sutherland Asbill & Brennan LLP is a law firm with global reach known for solving challenging business problems and resolving sophisticated legal issues for many of the world’s largest companies. Founded in 1924, the firm handles matters throughout the United States and worldwide. Seven major practice areas—corporate, energy and environmental, financial services, intellectual property, litigation, real estate, and tax—provide the framework for an extensive range of focus areas, allowing Sutherland attorneys to serve a diverse client base that ranges from small and medium-sized start-up businesses to a significant number of Fortune 100 companies.