# U ni te d S ta te s Co ur t of A pp ea ls For the Eig hth Circu it

__ __ __ __ __ __ __ __ __ __ __ __ __ _
No. 1 8- 16 26

__ __ __ __ __ __ __ __ __ __ __ __ __ _ Alex an de r Y. Usen ko , Deriv at iv el y on Beh al f of

th e Su nEd is on Sem ic on du ct or Ltd . Ret ire m en t Sa vi ng s Pl an

ll ll ll ll ll ll ll ll ll ll l Pla in ti

ff - App el la nt

v.

MEMC LLC; Th e In ve st m en t Co m m it te e o f th e Su nEd is on Sem ic on du ct or Ltd

. Ret ire m en t Sa vi ng s Pl an , Hem an t Kap ad ia ; Pe nn y Cu tre ll ; St ev e Ede ns ; Kar en St ei ne r; C he ng Yang ; Be n Ll or ic o

ll ll ll ll ll ll ll ll ll ll l Defe nd

an ts - App el le es

Jo hn Does 1-1 0

ll ll ll ll ll ll ll ll ll ll l Defe nd

an ts

__ __ __ __ __ __ App eal fro m

Uni te d S ta te s Di st ric t Co ur t fo r th e Eas te rn Dis tri ct of M is so ur i - St . Lou is

__ __ __ __ __ __
Su bm it te d: Jan ua ry

16 , 20 19 Fi le d: Ju ne 4, 2 01 9

__ __ __ __ __ __ Befo re BENTON, MELLOY, an d KELLY, Circ ui t J ud ge s.

__ __ __ __ __ __ KELLY, Cir cu it Ju dg e.A l e x an de r Use nk o is a fo rm er em pl oyee of Su nEd is on Sem ic on du ct or , LLC ( S e mi )

. S em i was on ce a who ll y own ed su bs id ia ry of Su nEd is on , I nc

. Sem i m ad e

a de fin ed -co nt rib ut io n ret ire m en t sa vi ng s pl an av ai la bl e to it s em pl oyees, in cl ud in g Use nk o, th at of

fere d Su nEd is on st oc k as a r e t i r e ment in ve st m en t op ti on

. On Apr il
21
, 20 16
, Su nEd is on fil ed fo r ba nk ru pt cy

. In Aug us t 20 17
, Use nk o br ou gh t su it de riv at iv el y on be ha lf of th e pl an an d, in th e al te rn at iv e, as a pu ta ti ve cl as s act io n on be ha lf of pl an pa rti ci pa nt s. Use nk o cl a i ms t h a t Sem i, th e in ve st m en t co m m it te e of
Sem i’s ret ire m en t sa vi ng s pl an , an d th e m em be rs of th e in ve st m en t co m m it te e br each ed th ei r fid uc ia ry du ti es un de r th e Em pl oyee Ret ire m en t In co m e Secu rit y Act of 19 74 (ERISA)

. Use nk o al le ge s th at be twee n Ju l y 2 0
, 2 0 1 5 , a nd Apr il 21 , 2 01 6, th e de fen da nt s kn e w or sh ou ld ha ve kn own th at Su nEd is on was in po or fin an ci al

co nd it io n an d face d po or lo ng -te rm pr os pe ct s an d th eref or e sh ou ld ha ve r e mo v e d
Su nEd is on st oc k fro m th e pl an ’s as se ts

. The d is tri ct co ur t di sm is se d Use nk o’s 1

co m pl ai nt as to al l defe nd an ts for fai lu re t o s ta te a cl ai m —o th er tha n Pen ny Cu tre ll

an d Karen St ei ne r, who were di sm is se d fo r la ck of ti m el y se rv ic e—a nd de ni ed
Use nk o le av e to am en d hi s co m pl ai nt

. Use nk o ap pe al s th e di sm is sa l f o r f a i l u re to
st at e a cl ai m

an d t he de ni al of l eav e to am en d. W e aff irm. 2

I

W e dr aw th e fo ll owi ng ba ck gr ou nd fro m th e well -p le ad ed fact ua l al le ga ti on s in Use nk o’s co m

pl ai nt , whi ch we acce pt as tru e fo r pu rp os es of th e de fen da nt s’

Th e H on or ab le Aud rey G. Fl ei ss ig
, Uni te d St at es Dis tri ct Ju dg e fo r t h e 1 East ern Dis tri ct of M is so ur i.

Use nk o d oe s n ot ap pe al th e d is m is sa l o f Cu tre ll an d S te in er. 2

-2

-m ot io ns to di sm is s. Park Irm at Dru g Co rp

. v. Exp res s Scri pt s Hol di ng Co
., 91 1 F.3 d 3
50 5, 5 12 (8t h C ir. 2 01 8)

.

The pl an was crea te d in May 20 14
, aft er Sem i sp un of f fro m Su nEd is on

. The pl an m ad e se ve ral in ve st m en t op ti on s av ai la bl e to it s pa rti ci pa nt s, in cl ud in g a fu nd th at in ve st ed so le ly in th e co m m on st oc k of Sem i’s fo rm er co rp or at e pa ren t. Use nk o,

am on g ot he rs , el ect ed to ex erci se th is op ti on an d he ld sh ares of Su nEd is on co m m on
st oc k th ro ug h hi s in di vi du a l p l a n a c c o un t. The pl an was la te r am en de d to free ze

co nt rib ut io ns to th e Su nEd is on st oc k f u n d

. P u rs ua nt to th e am en dm en t, effe ct iv e Feb ru ary 1, 20 15
, pa rti ci pa nt s co ul d ret ai n th ei r ex is ti ng in ve st m en ts bu t co ul d no lo ng er d ire ct ad di ti on al in ve st m en ts in to th e Su nEd is on st oc k fu nd

.

By m id -2 01 5, it was wid el y rep or te d th at Su nEd is on was faci ng li qu id it y
pr ob le m s an d was in fin an ci al di st res s du e to an am bi ti ou s se rie s of acq ui si ti on s. On
Ju ly 20
, Su nEd is on is su ed a pr es s rel e a s e a nn ou nc in g th at it wou ld acq ui re y et

an ot he r co m

pa ny, Viv in t So la r, In c., fo r $2 .2 bi ll io n. M a r k e t s r e a ct ed po or ly, an d
Su nEd is on ’s st oc k pr ic e fel l fro m $3 1.5 6 pe r sh are to $2 6.0 1 pe r sh are in a week

. On Aug us t 6, Su nEd is on is su ed an ot he r pr es s rel eas e, rep or ti ng a $2 63 m il li on lo ss in it s

se co nd qu art er. Tha t sa m e da y , th e fin an ci al pr es s warn ed th at Su nEd is on ha d a $1 0.7 bi ll io n co rp or at e de bt lo ad an d ne ga ti ve cas h flo w fro m op erat io ns

. By th e en d of th e da y, Su nEd is on ’s st oc k cl os ed at $1 7.0 8 pe r sh are. At th e ti m e, in ve st or de m an d fo r en erg y

st oc ks was g en eral ly w eak

.

On Nov em

be r 10
, Su nEd is on is su ed a pr es s rel eas e rep or ti ng it s th ird qu art er

re s u l t s

. The se res ul ts sp ur red m or e ne ga ti ve co m m en ta ry fro m th e fin an ci al pr es s, who qu es ti on ed whe th er Su nEd is on wou ld ev en be ab le to m eet it s ex is ti ng fin an ci al

W e al so de riv e cert ai n in fo rm at io n fro m pl an do cu m en ts an d an in de pe nd en t 3

au di to r’s rep or t da te d Decem be r 31
, 20 14
, whi ch Use nk o’s c o mp l a i nt refe rs to di rect ly an d who se au th en ti ci ty is no t in qu es ti on

. See D i t t mer Pro pe rti es L.P. v. F.D.I.C., 70 8 F .3d 10 11 , 10 21 (8t h C ir. 2 01 3)

. -3

-ob li ga ti on s. On Nov em be r 18
, Su nEd is on ’s st oc k cl os ed at $3 .2 5 p e r sh are. On
Ja nu ary 7, 2 01 6, Su nEd is on an no un ced th at it was res tru ct ur in g $ 73 8 m il li on of i ts de bt

. Tha t sa m e da y , th e fin an ci al p r e s s rep or te d th at th is de ci si on ha d tri gg ered a

m as si ve se ll -o ff be cau se of it s di lu ti ve effe ct on in ve st or s, ev en th ou gh Su nEd is on ’s

st rat eg y wou ld ad d a n e st im at ed $5 55 m il li on to it s li qu id it y

. Tha t week , s ha res of
Su nEd is on dro pp ed rou gh ly 30 p erce nt , clo si ng at $ 3.4 1.

By Ja nu ary 12
, th e fin an c i al pr es s was rep or ti ng th at Su nEd is on m ig ht no t

su rv iv e th e y ear, an d S u n Ed is on ’s st oc k cl os ed at $3 .02 pe r sh are, hi tt in g a lo w of $2 .36 du rin g th e da y

. Co m m en ta ry su gg es te d th at Su nEd is on st oc k was ris ky du e to it s ge ne ral ly di sa pp oi nt in g hi st or ic al pe rfo rm an ce an d feeb le gr owt h in earn in gs pe r sh are as well as th e co m

pa ny’ s h i g h de bt -m an ag em en t ris k. Su nEd is on th en twi ce
pu bl ic ly de la y ed fil in g it s an nu al rep or t, st at in g th at it ne ed ed ad di ti on al ti m e fo r it s

au di t co m

m it te e to co m

pl et e an in te rn al in ve st ig at io n an d o t h e r w i se co nf irm th e

accu racy of it s fi na nc ia l p os it io n.

In Apr il
, Su nEd is on an d cert ai n o f i t s su bs id ia rie s fil ed fo r ba nk ru pt cy

. Su nEd is on ’s co m

m on st oc k was sus pe nd ed im m ed ia te ly from tra di ng at th e m ark et
op en in g on th e New Yor k St oc k Exc ha ng e on Apr il 21
, 20 16

. All to ld
, be twee n Ju ly
20
, 20 15
, an d Apri l 21
, 20 16
, th e m ark et pr ic e of Su nEd is on st oc k fell fro m $3 1.6 6

to $0 .34

. A s a r e s ul t, th os e who ha d in ve st ed in Su nEd is on st oc k th ro ug h Sem i’s

ret ire m en t p la n e ffec ti ve ly los t t he en ti re v al ue of t he ir i nv es tm en t.

In hi s si ng le -co un t co m

pl ai nt , Use nk o al le ge s th at th e de fen da nt s br each ed th ei r fid uc ia r y d ut ie s. He cl ai m s th at th ey kn ew or sh ou ld ha ve kn own th at

co nt in ui ng to ho ld Su nEd is on st oc k be twee n Ju ly 20
, 20 15
, an d Apr il 21
, 20 16
, was im pr u d e nt be cau se Su nEd is on ’s fai li ng bu si ne ss pr os pe ct s dr am at ic al ly al te red it s

su it ab il it y as a ret ire m en t i nv es tm en t.

-4

-II

W e rev ie w th e di st ric t co ur t’s de ci si on gr an ti ng a m ot io n to di sm is s fo r fai lu re
to st at e a cl ai m de no vo , as su m in g al l f a c t u a l a l le ga ti on s as tru e an d co ns tru in g al l

reas on ab le in fere nc es in fav or of th e no nm ov in g pa r t y. Ret ro Tele vi si on , In c. v. Luk en Co m

m c’ns
, LLC, 69 6 F.3 d 76 6, 76 8 (8 th Ci r. 20 12 ). “ To su rv iv e a m ot io n to di sm is s, a co m

pl ai nt m us t co nt ai n su ffi ci en t fact ua l m at te r, acce pt ed as tru e, to ‘stat e a cl ai m to rel ie f th at is pl au si bl e o n it s face.’” Ash cro ft v. Iqb al
, 55 6 U.S. 6 62 , 67 8 (2 00 9) (q uo ti ng Bel l Atl

. Co rp

. v. Twom bl y , 55 0 U.S. 54 4, 57 0 (2 00 7) ). “ Thre ad ba re

r e c it al s of th e el em en ts of a cau se of act io n, su pp or te d by m ere co nc lu so r y
st at em en ts , do no t su ffi ce.” Id

. Rat he r, well -p le ad ed fact ua l al le ga ti on s m us t

“ pl au si bl y gi ve ris e to an en ti tl em en t to rel ie f.” Id

. at 67 9. Tha t is
, th ey m us t “ rai se a ri gh t t o re li ef ab ov e th e sp ecu la ti ve lev el .” Twom bl y , 55 0 U.S. at 55 5.

To pr ev ai l on a cl ai m of br each of fid uc ia ry du ty un de r ERISA, th e pl ai nt iff

“ m us t m ak e a p rima facie sh owi ng th at [a] defe nd an t ac te d a s a f id uc ia ry , bre ach ed [h is ] fid uc ia ry du ti es , an d th ereb y cau se d a lo ss to th e Pl an

. ” B r a d e n v

. W al -Ma rt St or es , Inc ., 58 8 F .3d 58 5, 5 94 (8t h C ir. 2 00 9)

.

ERISA im

po se s up on fid uc ia rie s twi n d u t i e s of lo y al ty an d pr ud en ce, req ui rin g th em to act so le ly in th e in te res t of pl an pa rti ci pa n t s a nd be ne fic ia rie s an d to carr y ou t th ei r du ti es wit h th e care , sk il l, pr ud en ce,

an d di li ge nc e un de r th e ci rcu m st an ces th en pr ev ai li ng th at a pr ud en t

m an act in g in a li ke cap aci ty and fam il ia r wit h su ch m at te rs wou ld us e in th e co nd uc t o f an en te rp ris e o f a l ik e ch arac te r an d wi th li ke aim s.

Id . a t 59 5 (cl ean ed up ). Th e “ pr ud en t pe rs on st an da rd is an ob jecti ve st an da rd th at fo cu se s on th e fid uc ia ry ’s co nd uc t pr eced in g t he ch al le ng ed de ci si on .” Ro th v. Sawy er-C le at or Lum

be r Co
., 16 F.3 d 91 5, 91 7– 18 (8 th Ci r. 19 94 ) (ci ta ti on om it te d)

. ERISA req ui res fid uc ia rie s to act wit h pr ud en ce, no t pr es ci en ce, an d th eref or e th e rel ev an t in qu iry fo cu se s on th e in fo rm at io n av ai l a b l e to th e fid uc ia ry at th e ti m e of

-5

-t h e r e l e v an t in ve st m en t de ci si on

. Pen si on Ben efi t Gua r. Co rp

. ex rel

. St

. Vin ce n t

Cat ho li c Med

. Ct rs

. Ret

. Pl an v. Mo rg an St an le y In v. Mg m t., In c., 71 2 F.3 d 70 5, 71 6 (2 d C ir. 2 01 3)

.

In Fi fth Thi rd Ban co rp v. Dud en ho effe r, 57 3 U.S. 4 0 9 ( 2 0 1 4)
, th e Su pr em e Co ur t co ns id ered ho w th e pl ead in g st an da rd art ic ul at ed in Iq ba l an d Twom bl y gu id es th e an al y si s of a l l e g a t i o n s th at ERISA fid uc ia rie s “ kn ew or sh ou ld ha ve kn own in li gh t of pu bl ic ly av ai la bl e in fo rm at io n, su ch as ne wsp ap er art ic le s, th at co nt in ui ng to ho ld an d pu rch as e [th e em pl oyer’s] st oc k was im

pr ud en t

. ” I d. at 42 6. In rel ev an t
pa rt, th e co m

pl ai nt in Dud en ho effe r al le ge d th at pu bl ic ly av ai la bl e in fo rm at io n

warn ed th at th e st oc k at is su e was “ ov erv al ue d an d ex ces si ve ly ris ky” an d cl ai m ed

t h at , u nd er th e ci rcu m st an ces , a pr ud en t fid uc ia ry wou ld ha ve kn own by J u l y 2 0 0 7 th at co nt in ui ng to ho ld th e st oc k was im pr ud en t. Id

. at 41 3. Bet ween Ju ly 20 07 an d Sep te m be r 20 09
, whe n th e co m

pl ai nt was fil ed
, th e st oc k’s p r i c e d r o pp ed by 74 %, whi ch “ el im in at ed a la rg e pa rt of th e ret ire m en t sa vi ng s th at th e pa rti ci pa nt s ha d in ve st ed in ” th e p la n. Id

.

The Co ur t op in ed t h a t “wh ere a st oc k is pu bl ic ly tra de d, al le ga ti on s th at a fid uc ia ry sh ou ld ha ve reco gn iz ed fro m pu bl ic ly av ai la bl e in fo rm at io n al on e th at th e

m ark et was ov er- or un de rv al ui ng th e st oc k are im pl au si bl e as a ge ne ral ru le
, at le as t in th e ab se nc e of sp eci al ci rcu m st an ces .” Id

. at 4 2 6

. Th i s i s be cau se “ ERISA fid u c i a r i e s, who

. . . co ul d reas on ab ly se e li tt le ho pe of ou tp erfo rm in g th e m ark et ba se d so le ly on th ei r an al y si s of pu bl ic ly av ai la bl e in fo rm at io n m ay , a s a g e n e r al

m at te r,

. . . pr ud en tl y r e l y o n t h e mar ke t pr ic e.” Id

. at 42 6– 27 (cl ean ed up ). In it s

an al y si s, th e Co ur t em

br aced th e vi ew th at a se cu rit y ’s pr ic e in an effi ci en t m ark et refl ect s al l p ub li cl y

av ai la bl e in fo rm at io n an d rep res en ts th e m ark et ’s bes t es ti m at e of it s va lu e in li gh t of it s ris ki ne ss an d th e fu tu re ne t in co m e flo ws th at th os e ho ld in g it are l ik el y

to rece iv e. See Cob ur n v. Eve rco re Trust Co
., 84 4 F.3d 96 5, 9 69 (D.C. Ci r. 20 16 ). Not in g t h a t th e co m pl ai nt at is su e di d no t po in t to an y sp eci al ci rcu m st an ce th at ren de red rel ia nc e o n t h e marke t pr ic e im pr ud en t, th e Co ur t

-6

-rem an de d fo r th e lo wer co ur ts to ap pl y it s gu id an ce i n t h e f irs t in st an ce. Dud en ho effe r, 57 3 U.S. at 42 7– 30

.

The si m il ari ty be twee n Use nk o’s al le ga ti on s an d th os e th at th e Su pr em e Co ur t d e e med in su ffi ci en t to pl au si bl y st at e a br each of th e du ty of pr ud en c e i n Dud en ho effe r is un de ni ab le

. Use nk o’s co m pl ai nt pr es en ts a se rie s of pu bl ic

an no un cem en ts by Su nEd is on th at sp ur red ne ga ti ve co m m en t a ry by th e fin an ci al

pr es s an d co nc om it an t dr op s in st oc k pr ic e. The co m pl ai nt fau lt s th e de fen da nt s fo r fai li ng to a c t o n t h i s pu bl ic ly av ai la bl e in fo rm at io n an d al le ge s th at th e de cl in es in
Su nEd is on ’s st oc k pr ic e an d rep or ts of Su nEd is on ’s ex tra or di na ry de bt s an d li qu id it y
pr ob le m s sh ou ld ha v e pr om pt ed th em to in ve st ig at e an d ul ti m at el y de te rm in e th at di ve st in g fro m Su nEd is on st oc k wou ld be pr ud en t as earl y as Ju ly 20
, 20 1 5

. I t

co n t a i n s no al le ga ti on s th at th e ci rcu m st an ces in di cat ed to th e de fen da nt s th at th ey

co ul d no t rel y on th e m ark et ’s va lu at io n of Su nEd is on s t o c k

. S e e Si ng h v. Rad io Sh ack Co rp ., 88 2 F.3 d 13 7, 14 7 (5 th Ci r. 20 18 ) (p er cu ria m ) (“ Pl ai nt iff s can no t

ev ad e Dud

en ho ef fe r ’s ge ne ral im

pl au si bi li ty ru le by d i s g u i s in g cl ai m s ba se d on
pu bl ic in fo rm at io n as sp eci al ci rcu m st an ces .”). In de ed
, Use nk o’s al le ga ti on s su gg es t th at Su nEd is on ’s st oc k pr ic e di d reac t to th e co m pa ny’ s an n o un cem en ts an d th e fin an ci al pr es s’s ne ga ti ve co m m en ta ry as to th e co m

pa ny’s hi gh de bt lo ad an d li qu id it y pro bl em s, am on g o th er co nc ern s.

In su m , Use nk o, li ke th e pl ai nt iff s in Dud en ho effe r, al le ge s th at th e de fen da nt s br each ed th ei r fid uc ia ry du ti es be cau se th ey fai le d to “ ou tp erfo rm [] th e m ark et ba se d

so le ly on th ei r an al y si s of pu bl ic ly av ai la bl e in fo rm at io n” a n d to co nc lu de th at , be cau se Su nE d i so n st oc k was ex ces si ve ly ris ky, th e pl an sh ou ld di ve st fro m Su nEd is on

. Id

. at 42 7 (cl ean ed up )

. A s e x pl ai ne d by th e Su pr em e Co ur t in Dud en ho effe r, as well as se ve ral of ou r si st er ci rcu it s ex am in in g si m il ar cl ai m s, su ch al le ga ti on s are in su ffi ci en t to pl au si bl y al le g e t h a t ERISA fid uc ia rie s br each ed th e du ty of pr ud en ce. See i d ; s e e a l s o K op p v. Klei n, 89 4 F.3 d 21 4, 21 8– 21 (7 th Ci r. 20 18 ) (p er curi am ) (d is m is si ng a cl ai m th at de fen da nt s b reac he d fi du ci ary du ty “ by

-7

-al lo win g Pl an pa rti ci pa nt s to in ve st in Id earc st oc k at a ti m e whe n pu bl ic ly av ai la bl e

in fo rm at io n rev eal ed it was no t a pr ud en t i n v e s t ment ”); Ri ne ha rt v. Leh m an Bro s. Hol di ng In c., 81 7 F.3 d 56
, 61
, 65 –6 8 (2 d Ci r. 20 16 ) (p er cu ria m ) (d is m is si ng a cl ai m th at fid uc ia rie s “ pe rm it [te d] in ve st m en t in Leh m an st oc k in th e face of ci rcu m st an ces
arg ua bl y fo res ha do win g it s ev en tu al de m is e”)

. Acco rd in gl y , Use nk o fai ls to pl au si bl y al le ge th at th e de fen da nt s br each ed th e du ty of pr ud en ce an d di sm is sa l fo r fai lu re t o s ta te a cl ai m

is pro pe r. 4

Use nk o’s at te m

pt s to ev ad e Dud en ho effe r are un av ai li ng

. W e reject Use nk o’s
arg um en t th at Tib bl e v. Edi so n In te rn at io n a l
, 1 3 5 S. Ct

. 18 23 (2 01 5) sa ve s hi s de fic ie nt du ty-of-p ru de nc e al le ga ti on s. The Su pr em e Co u r t ’s ack no wled gm en t in Tib bl e th at an ERISA fid uc ia ry “ ha s a co nt in ui ng du ty to m on it or tru st in ve st m en ts

an d rem ov e im

pr ud en t on es ,” id

. at 18 28
, do es no t ex em pt Use nk o’s co m

pl ai nt fro m

m eet in g Dud en ho effe r’s pl ead in g req ui rem en ts , se e, e.g ., Si ng h, 88 2 F.3 d at 14 7 (5 th Ci r. 20 18 ) (p er cu ria m ) (n ot in g th at “ Tib bl e es ta bl is he s th at ERISA fid uc ia rie s ha ve

a co n ti nu in g du ty to m on it or th e pr ud en ce of pl an in ve st m en ts ,” bu t no ne th el es s

co nc lu di ng th at “ [b ]ecaus e th e co m pl ai nt do es n o t p l a u si bl y id en ti fy an y sp eci al ci rcu m st an ces un de rm in in g th e m ark et pr ic e

. . . , it do es no t st at e a du ty of pr ud en ce cl ai m ba se d on pu bl ic in fo rm at io n” ). And Use nk o can no t di st in gu is h Dud en ho effe r

on th e ba si s th at it on ly ap pl ie s to du ty-of-p ru de nc e cl ai m s in th e co nt ex t of em pl oyer

se cu rit ie s. The Co ur t in Dud en ho effe r ex pl ic it ly r e je c t e d th e co nt en ti on th at fid uc ia rie s of em

pl oyee st oc k own ers hi p p la ns are ent it le d to a sp eci al pr es um pt io n

And Use nk o’s cl ai m th at th e d e fen da nt s al so br each ed th ei r co -fi du ci ary 4 ob li g a t io ns by kn owi ng ly pa rti ci pa ti ng in each ot he r’s pu rp or te d br each es can no t

“ su rv iv e wit ho ut a su ffi ci en tl y pl ed th eo ry of an un de rlyi n g b r e ach .” Bro wn v. Med tro ni c, In c., 62 8 F.3 d 45 1, 46 1 (8 th Ci r. 20 10 ). So d is m is sa l of th at cl ai m was pr op er, t oo

. -8

-of pr ud en ce. See Dud en ho effe r, 57 3 U.S. at 41 8. As su ch
, we se e no in di cat io n th at

th e Co ur t in te nd ed to li m it Dud en ho effe r to em pl oyer se cu rit ie s. See id

. at 42 5– 30

. 5

III

Fi na ll y , we affi rm th e de ni al of Us e n k o ’s m ot io n fo r le av e to am en d hi s

co m pl ai nt b e c a u s e he fai le d to su bm it a pr op os ed am en de d co m pl ai nt wit h hi s

m ot io n. See, e.g., In re 2 00 7 No va st ar Fi n. In c., Sec. Liti g., 57 9 F.3d 87 8, 88 4 (8t h Ci r. 20 09 ).

Acco rd in gl y , th e jud gm en t o f th e d is tri ct co ur t i s af fir m ed

.

__ __ __ __ __ __ __ __ __ __ __ __ __ __ __

In hi s rep ly br ie f, Use nk o arg ue s fo r th e fir st ti m e th at hi s co m pl ai nt su rv iv es 5 th e de fen da nt s’ Ru le 1 2 ( b ) (6 ) m ot io n be cau se he al so pl ead s th at th e de fen da nt s br each ed th ei r fid uc ia ry du ti es by fai li ng to di ve rs ify away fro m Su nEd is on co m m on st oc k. W e or d i n a ril y do no t co ns id er arg um en ts rai se d fo r th e fir st ti m e in a rep ly br ie f an d de cl in e to do so he re. See, e.g ., Vik in g Su pp ly v. Nat’l Cart Co
., 31 0 F.3 d 10 92 , 10 99 (8t h C ir. 2 00 2)

. -9

-