Opinion ID: 1249351
Heading Depth: 2
Heading Rank: 5

Heading: ATSI's Claims and Procedural History

Text: ATSI claims that the Levinson Defendants, Wolfson, Langeveld, Rose Glen, CCM, and Crown Capital are liable for misrepresentations under § 10(b) and Rule 10b-5; that these same defendants and Trimark are also liable for market manipulation in violation of Rule 10b-5; and that the Citco Defendants and others not relevant to this appeal are liable as control persons under § 20(a). ATSI also asserts various state law claims. ATSI filed its complaint in the first suit in October 2002 against all defendants except Wolfson ( ATSI I ). In March 2004, the district court dismissed ATSI's first amended complaint against the Levinson Defendants and Rose Glen for failing to satisfy the pleading requirements of Fed. R.Civ.P. 9(b) and the Private Securities Litigation Reform Act (PSLRA), 15 U.S.C. § 78u-4(b). It dismissed as to the other defendants for improper service and lack of personal jurisdiction. Second and third amended complaints followed and, in July 2004, ATSI filed a largely identical complaint against Levinson and Wolfson in a separate suit ( ATSI II ). In February 2005, the district court dismissed the third amended complaint in ATSI I under Fed. R.Civ.P. 12(b)(6) with prejudice for again failing to satisfy Rule 9(b) and the PSLRA's pleading requirements. See ATSI Commc'ns, 357 F.Supp.2d at 720. Because subject matter jurisdiction was based solely on ATSI's federal claims, the district court did not separately consider the state law causes of action. The district court entered judgment under Fed. R.Civ.P. 54(b), and the parties in ATSI II stipulated to dismissal based on the district court's order in ATSI I. ATSI's timely appeals followed.