Alston & Bird won a significant Eleventh Circuit appeal affirming the dismissal of a securities class action against MiMedx Group, Inc. The case involved allegations that resulted in the criminal convictions of MiMedx’s CEO and COO for securities fraud and conspiracy to commit securities fraud, respectively. Nevertheless, the Alston & Bird team obtained a complete dismissal of the civil securities fraud class action lawsuit brought against MiMedx by its shareholders. In a 3-0, published decision, the Eleventh Circuit affirmed the district court’s decision that the plaintiff failed to plead the loss causation element of its claim, and the Eleventh Circuit further affirmed the district court’s denial of the plaintiff’s motion for leave to amend.
Notably, the ruling provides critical guidance for defendants in the Eleventh Circuit on the loss causation element of a securities fraud claim, and what constitutes a corrective disclosure of an alleged securities fraud.
Representing MiMedx in the case were Alston & Bird partners Robert Long and Elizabeth Gingold Clark; senior counsel Keith Blackwell; and senior associates Tim Fitzmaurice, Sierra Shear, and Charlotte Bohn.
Notably, the ruling provides critical guidance for defendants in the Eleventh Circuit on the loss causation element of a securities fraud claim, and what constitutes a corrective disclosure of an alleged securities fraud.
Representing MiMedx in the case were Alston & Bird partners Robert Long and Elizabeth Gingold Clark; senior counsel Keith Blackwell; and senior associates Tim Fitzmaurice, Sierra Shear, and Charlotte Bohn.