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Fenwick Partners Convince Ninth Circuit to Uphold Securities Class Action Dismissal

September 08, 2014

​Fenwick & West litigation partners Susan Muck and Jennifer Bretan were featured in an Inside Counsel article on how their team successfully convinced the Ninth Circuit to affirm the dismissal of a securities class action against their client Immersion Corp.

“This is a huge victory for Immersion,” Muck told the publication. “It's also great news for any other public company in the Ninth Circuit fearful that the announcement alone of an investigation will automatically trigger class actions.”

The ruling in Loos v. Immersion Corp. is the first from the Ninth Circuit stating that the mere announcement of an internal company investigation, standing alone, is insufficient to establish the loss causation required for a securities class action.

The Ninth Circuit opinion also affirmed that earnings releases announcing disappointing financial results were likewise insufficient by themselves to meet the loss causation requirement.

Jennifer Bretan presented the winning oral argument to the federal appeals court panel. The Fenwick litigation team representing Immersion also included partner Felix Lee and associate Marie Bafus.

Bretan and Muck both focus their legal practice on securities litigation, internal investigations for companies, and representation of corporate clients and individuals before the SEC and other regulatory agencies.

The full article, which originated with the Women, Influence & Power in Law Network, is available through the Inside Counsel website.