Ropes & Gray Secures Dismissal of Securities Class-Action Lawsuit for LPL Financial Holdings Inc.

In The News
August 18, 2017

A Ropes & Gray litigation team secured a complete dismissal of a securities class-action lawsuit on behalf of LPL Financial Holdings Inc., its former CEO and its current CFO. Filed in the Southern District of California, the lawsuit alleged that LPL and its executives defrauded investors by misrepresenting LPL’s financial condition and by overpaying to repurchase LPL shares from its largest shareholder, TPG Capital.

On August 18, Chief U.S. District Judge Barry Ted Moskowitz dismissed the complaint in its entirety. The court held that several of the allegedly false and misleading statements were inactionable as a matter of law, and that the complaint failed in its entirety to allege that the defendants acted with an unlawful state of mind. 

The bi-coastal Ropes & Gray team included attorneys from the San Francisco and Boston offices, and was led by business & securities litigation partner Matt McGinnis.