Smith v. First Marblehead Corp.

MEMORANDUM AND ORDER

SARIS, District Judge.

I. INTRODUCTION

In this proposed class action, plaintiffs contend that First Marblehead Corpora*226tion (FMD) and two of its executives violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 by misrepresenting the nature of a 2009 transaction and its tax consequences. Defendants move to dismiss, arguing that plaintiffs have not met the heightened pleading requirements of the Private Securities Litigation Reform Act of 1995 (PSLRA). See 15 U.S.C. § 78u-4(b)(l)-(2). After hearing, Defendants’ Motion to Dismiss (Docket No. 31) is ALLOWED.