In Re: Dell Inc, et al., No. 08-51163 (5th Cir. 2012)Annotate this Case
Plaintiffs, and other owners of Dell Inc. common stock, alleged that defendants violated the securities laws between by fraudulently inflating reported revenues, engaging in erroneous accounting, and disseminating false information to the public. The district court granted defendant's motion to dismiss with prejudice and plaintiffs appealed. While the appeal was pending, plaintiffs moved in the district court for class certification and approval of a proposed settlement agreement. The district court certified a class and approved the class-action settlement. Two groups of objectors to the settlement subsequently appealed, claiming numerous deficiencies in the proceedings. The court held that appellants have demonstrated their membership in a class and have standing to bring their objections; the district court did not abuse its discretion when it systematically analyzed the proposed settlement under each of the Reed factors and found that none counseled against approving the settlement; the district court did not abuse its discretion in certifying the class as defined; the district court did not abuse its discretion in approving the settlement's claims-making process; the district court did not abuse its discretion in approving the elimination of the de minimus provision in the original plan of allocation; the district court's decision not to reissue notice or reopen the filing period was not an abuse of discretion; objectors presented no reason to conclude that the judgment was an abuse of discretion; and there was no basis for concluding that the district court abused its discretion in setting the amount of attorney's fees and in awarding interest in the fee award. Accordingly, the court affirmed the judgment of the district court.