United States District Court, S.D. California
CHARTER TOWNSHIP OF CLINTON POLICE AND FIRE RETIREMENT SYSTEM, Individually and on Behalf of All Others Similarly Situated, Plaintiff,
LPL FINANCIAL HOLDINGS INC., et al., Defendants.
ORDER GRANTING MOTION FOR APPOINTMENT AS LEAD
PLAINTIFF AND APPROVAL OF SELECTION OF LEAD COUNSEL
Ted Moskowitz, Chief Judge
Soft Drink and Brewery Workers Union Local 812 Retirement
Fund (the “Retirement Fund”) has filed a motion
for appointment as lead plaintiff and approval of lead
plaintiff’s selection of lead counsel. No competing
motions were filed, and no opposition was filed. For the
reasons discussed below, The Retirement Fund’s motion
March 22, 2016, Plaintiff Charter Township of Clinton Police
and Fire Retirement System commenced this action on behalf of
itself and all others similarly situated.
action is a securities class action on behalf of all
purchasers of common stock of LPL Financial Holdings Inc.
(“LPL”) between December 8, 2015 and February 11,
2016, inclusive (“Class Period”).
Complaint alleges that during the Class Period, Defendants
issued false and misleading statements and/or failed to
disclose adverse information regarding LPL’s business
and prospects, artificially inflating common stock prices
during the Class Period. The Complaint asserts claims for
violations of section 10(b) of the Exchange Act, 17 U.S.C.
§ 78j(b), and Rule 10b-5, 17 C.F.R. § 240.10b-5, as
well as violations of section 20(a) of the Exchange Act, 17
U.S.C. § 78t(a).
Lead Plaintiff Analysis
the Private Securities Litigation Reform Act
(“PSLRA”), no later than 20 days after filing a
class action securities complaint, a private plaintiff or
plaintiffs must publish a notice advising members of the
purported plaintiff class of the pendency of the action, the
claims asserted, and that any member of the purported class
may move the court to serve as lead plaintiff. 15 U.S.C.
§ 78u-4(a)(3)(A)(i). Not later than 60 days after the
date on which the notice is published, any member of the
purported class may move the court to serve as lead plaintiff
of the purported class. Id. Within 90 days after
publication of the notice, the Court shall consider any
motion made by a class member to serve as lead plaintiff. 15
U.S.C. § 78u- 4(a)(3)(B)(i).
Court shall appoint as lead plaintiff “the member or
members of the purported plaintiff class that the court
determines to be most capable of adequately representing the
interests of class members.” 15 U.S.C. §
78u-4(a)(3)(B)(i). The presumptively most adequate plaintiff
is the one who “has the largest financial interest in
the relief sought by the class” and “otherwise
satisfies the requirements of Rule 23 of the Federal Rules of
Civil Procedure.” 15 U.S.C. § 78u-
4(a)(3)(B)(iii)(I). “In other words, the district court
must compare the financial stakes of the various plaintiffs
and determine which one has the most to gain from the
lawsuit. It must then focus its attention on that plaintiff
and determine, based on the information he has provided in
his pleadings and declarations, whether he satisfies the
requirements of Rule 23(a), in particular those of
‘typicality’ and ‘adequacy.’”
In re Cavanaugh, 306 F.3d 726, 730 (9th Cir. 2002).
presumption that a plaintiff is the most adequate lead
plaintiff may be rebutted only upon proof by a member of the
purported plaintiff class that the plaintiff will not fairly
and adequately protect the interests of the class or is
subject to unique defenses that render such plaintiff
incapable of adequately representing the class. 15 U.S.C.
Retirement Fund believes that with its losses of
approximately $78, 902 in connection with its purchase of 12,
500 shares of LPL common stock (Exs. A-B to McCormick Decl.),
it has the largest financial interest in the relief sought by
the class. Because no competing motions have been filed ...