Munger, Tolles & Olson represented Edison International and its executives in obtaining dismissal with prejudice of a securities fraud class action alleging that the utility failed to disclose information that negatively affected its stock price.
The lawsuit, filed in 2015, alleged that Edison and its executives made false or misleading public statements relating to a $3.3 billion settlement approved by the California Public Utilities Commission (CPUC) concerning the retirement of the San Onofre Nuclear Generating Station. The plaintiff claimed that Edison’s stock price was artificially inflated because the company failed to disclose alleged settlement talks with CPUC officials, and that its stock price declined when that alleged fraud was revealed.
On March 16, 2018, Judge Roger T. Benitez of the U.S. District Court for the Southern District of California dismissed the lawsuit with prejudice, writing that the court “cannot put on blinders to facts Plaintiff wishes it not to see,” that the plaintiff’s allegations that wrongdoing by Edison caused a loss were “even weaker” than those previously dismissed, and that leave to amend was inappropriate because Edison and its executives had “prevailed three times on their motions to dismiss the same claims.”
The Munger, Tolles & Olson attorneys involved in the matter are John W. Spiegel, Henry Weissmann, John M. Gildersleeve and Lauren C. Barnett.