Freudenberg v. E*Trade Financial Corporation et al, No. 1:2007cv08538 - Document 84 (S.D.N.Y. 2010)

Court Description: OPINION re: 72 MOTION to Dismiss the Consolidated Amended Class Action Complaint filed by Robert J. Simmons, Mitchell H. Caplan, E*Trade Financial Corporation, Dennis E. Webb. In light of the foregoing authorities and conclusions, Defendants' motion to dismiss is denied. (Signed by Judge Robert W. Sweet on 5/10/2010) (tro)

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UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK ........................... --X DOCUMENT E,LEc~'KONTCM.LY FILED LARRY FREUDENBERG, Individually and On Behalf of All Others Similarly Situated, Plaintiff, -against- 07 Civ. 8538 OPINION E*TRADE FINANCIAL CORPORATION, MITCHELL H. CAPLAN, ROBERT J. SIMMONS and DENNIS E. WEBB, Defendants A P P E A R A N C E S : Attorneys for Plaintiff BROWER PIVEN 488 Madison Avenue, ath Floor New York, NY 10022 By: David A.P. Brower, Esq. LEV1 & KORSINSKY, LLP 30 Broad Street, Floor New York, NY By: Eduard Korsinsky, Esq. Attorneys for Defendants DAVIS POLK & WARDWELL LLP 450 Lexington Avenue New York, NY 10017 By: Amelia T.R. Starr, Esq S w e e t , D.J. Defendants E*TRADE Financial Corporation ("E*TRADEr' or the "Company"), CEO Mitchell H. Caplan ("Caplan"), CFO Robert J. Simmons ("Simmons") and Capital Markets Division ("EGAM") President Dennis E. Webb ('Webb") (collectively, the "Individual Defendants") have moved to dismiss the Consolidated Amended Class Action Complaint for Violations of the Federal Securities Laws (the "~om~laint")' pursuant to Rules 9(b) and 12(b) (6) of the Federal Rules of Civil Procedure and the Private Securities Litigation et Reform Act of 995 (the "PSLRA"), 15 U.S.C. 55 78u-4 - seq. Based upon the conclusions set forth below, the motion is denied. By the Fall of 2007, the collapse of the subprime mortgage and the housing markets and the decline in the housing market were widely recognized. At the close of the third quarter in October 2007, many of the world's largest financial institutions announced their first in a wave of crippling write-downs of mortgage-related assets, including $11 billion by Citigroup, $10 billion by UBS and $8 billion by Merrill Lynch. 1 UBS Posts Fresh $lObn Write-Down, BBC Paragraph references ('3) are those set forth in the Complaint.

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