Opinion ID: 166607
Heading Depth: 3
Heading Rank: 1

Heading: Consolidated complaint and dismissal of some claims

Text: 11 These events gave rise to three separate shareholder class actions, which were later consolidated into one complaint over which New England was the lead plaintiff. The consolidated complaint alleged that Sprint made false and misleading statements in connection with the WorldCom merger, in violation of Section 10(b) of the Securities and Exchange Act of 1934 (the Act), 15 U.S.C. § 78j(b) (2000), and SEC Rule 10b-5, 17 C.F.R. § 240.10b-5 (2000), promulgated thereunder. The complaint also alleged Sprint and WorldCom violated Section 20(a) of the Act (codified at 15 U.S.C. § 78t(a)), a provision which provides for joint and several liability for any person who controls another that has violated the Act or any regulation promulgated thereunder. 12 Prior to class certification, Sprint filed a motion to dismiss the suit. Sprint II, 232 F.Supp.2d at 1199. In a lengthy opinion, the district court agreed to dismiss nearly all of the plaintiff class' allegations, except for three paragraphs in the complaint dealing with misstatements and omissions made to the Department of Justice and the European Commission. Id. at 1230.