JDS Uniphase Wins Shareholder Lawsuit
Professor Joseph A. Grundfest is quoted by Associated Press in a story about JDS Uniphase winning in a class action suit that had been brought against them by shareholders:
A jury found Tuesday that JDS Uniphase Corp. and four former executives are not liable for shareholders' losses in the dot-com meltdown because the company could not have foreseen its staggering losses.
The jury in U.S. District Court for the Northern District of California returned a unanimous verdict clearing the Milpitas-based maker of fiber-optic networking equipment and its executives of all allegations of securities fraud and insider trading, JDS Uniphase said in a statement.
The lawsuit, filed by the state of Connecticut and other plaintiffs, is a rare case of a shareholder class-action going to trial instead of being settled out of court. But shareholder cases that have gone to trial have ended in the companies' favor more often than the plaintiffs'.
The plaintiffs, who can appeal the ruling, were seeking more than $20 billion in damages over claims that investors lost money because of the company's malfeasance.
Stanford Law School professor and former Securities and Exchange Commissioner Joseph Grundfest said that trend suggests the most persistent plaintiffs likely had "visions of sugarplums dancing in their heads."