LOWINGER v. MORGAN STANLEY & CO. LLC

Docket No. 14-3800-cv August Term, 2014.

841 F.3d 122 (2016)

Robert LOWINGER, Plaintiff-Appellant, Thomas E. Nelson, individually and on behalf of all others similarly situated, Rock Southward, derivatively on behalf of himself and all others similarly situated, Avatar Securities, LLC, Meredith Bailey, on behalf of themselves and all others similarly situated, Dmitri Bougakov, on behalf of themselves and all others similarly situated, Ryan Cefalu, on behalf of themselves and all others similarly situated, Lorrain Chin, First New York Securities L.L.C., Atish Gandhi, on behalf of themselves and all others similarly situated, Phillip Goldberg, on behalf of themselves and all others similarly situated, Eric Hamrick, on behalf of themselves and all others similarly situated, Steve Jarvis, Joe Johnson, on behalf of themselves and all others similarly situated, Nuhket Kayahan, on behalf of themselves and all others similarly situated, David Kenton, on behalf of themselves and all others similarly situated, Dennis Kuhn, on behalf of themselves and all others similarly situated, Benjamin Levine, on behalf of themselves and all others similarly situated, Katherine Loiacono, on behalf of themselves and all others similarly situated, Crystal McMahon, on behalf of themselves and all others similarly situated, George Michalitsianos, on behalf of themselves and all others similarly situated, Randy Teresa Mielke, on behalf of themselves and all others similarly situated, Jacinto Rivera, on behalf of themselves and all others similarly situated, Faisal Sami, on behalf of themselves and all others similarly situated, Sanjeev Sharma, on behalf of themselves and all others similarly situated, Colin Suzman, on behalf of themselves and all others similarly situated, T3 Trading Group, LLC, Vijay Akkaraju, Alexis Alexander, as custodian for Chloe Sophie Alexander, Brian Roffe Profit Sharing Plan, individually and on behalf of all others similarly situated, Jose Galvan, Mary Galvan, Robert Herpst, individually and on behalf of all others similarly situated, Sanjay Israni, on behalf of themselves and all others similarly situated, KBC Asset Management N.V., and the Employees' Retirement System of the Government of the Virgin Islands (Collectively, the Institutional Investors), Douglas M. Lightman, individually and on behalf of all others similarly situated, Dennis Palkon, individually and on behalf of all others similarly situated, Rick Pond, Jacob Salzmann, individually and on behalf of all others similarly situated, Michael Spatz, Maren Twining, individually and on behalf of all others similarly situated, Goldrich Cousins P.C. 401(k) Profit Sharing Plan & Trust, Irving S. Braun, individually, Edward Childs, derivately on behalf of himself and all others similarly situated, Kathy Reichenbaum, individually and on behalf of all others similarly situated, Jun Yan, on behalf of herself and all others similarly situated, Elbita Alfonso, Vicky Jones, Phyllis Peterson, Jerry Rayborn, on behalf of themselves and all others similarly situated, Edward Vernoff, Justin f. Lazard, on behalf of himself and all others similarly situated, Sylvia Gregorcyzk, on behalf of herself and all others similarly situated, Peter Brinckerhoff, Garrett Garrison, David Goldber, individually and on behalf of all others similarly situated, Kevin Hyms, individually and on behalf of all others similarly situated, Richard P. Eannarino, individually and on behalf of all others similarly situated, Peter Mamula, individually and on behalf of all others similarly situated, Khodayar Amin, on behalf of himself and all others similarly situated, Elliot Leitner, individually and on behalf of all others similarly situated, Barbara Steinman, on behalf of herself and all others similarly situated, Howard Savitt, on behalf of himself and all others similarly situated, Chad Roderick, Eugene Stricker, individually and on behalf of all others similarly situated, Steve Sexton, individually and on behalf of all others similarly situated, Keith Wise, individually and on behalf of all others similarly situated, Jonathan R. Simon, James Chang, individually and on behalf of all others similarly situated, Sameer Ansari, individually and on behalf of all others similarly situated, Darryl Lazar, individually and on behalf of all others similarly situated, Michael Lieber, individually and on behalf of other similarly situated, Thomas J. Ahrendtsen, Aaron M. Levine, individually and on behalf of all others similarly situated, Karen Cuker, individually and on behalf of all others similarly situated, Brian Gralnick, individually and on behalf of all others similarly situated, Jennifer Stokes, individually and on behalf of all others similarly situated, Vernon R. DeMois, Jr., individually and on behalf of all others similarly situated, Hal Hubuschman, derivately on behalf of Facebook, Inc., Edward Shierry, individually and on behalf of all others similarly situated, Janis Fleming, William Cole, derivatively on behalf of Facebook, Inc., Steve Griffis, Holly McConnaughey, derivatively on behalf of Facebook Inc., Gaye Jones, derivatively on behalf of Facebook Inc., Lidia Levy, on behalf of herself and all others similarly situated, Plaintiffs, v. MORGAN STANLEY & CO. LLC, J.P. Morgan Securities LLC, Goldman Sachs & Co., and Facebook, Inc., a Delaware corporation, Defendants-Appellees, Barclays Capital Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Erskine B. Bowles, James W. Breyer, David Spillane, David A. Ebersman, Allen & Company LLC, BMO Capital Markets Corp., Blaylock Robert Van LLC, Donald E. Graham, C.L. King & Associates, Inc., Reed Hastings, Cabrera Capital Markets, LLC, Castleoak Securities, L.P., Peter A. Thiel, Citigroup Global Market, Inc., Mark E. Zuckerberg, Cowen and Company, LLC, Credit Suisse Securites (USA) LLC, Sheryl K. Sandberg, Deutsche Bank Securities Inc., Cipora Herman, E Trade Securities LLC, Itau BBA USA Securities, Inc., Lazard Capital Markets LLC, Lebenthal & Co., LLC, Loop Capital Markets LLC, M.R. Beal & Company, Macquarie Capital (USA) INC., Muriel Siebert & Co., Inc., Oppenheimer & Co., Incorporated, Pacific Crest Securities LLC, Piper Jaffray & Co., RBC Capital Markets, LLC, Raymond James & Associates, Inc., Samuel A. Ramirez & Company, Inc., Stifel, Nicolaus & Company, Inc., The Williams Capital Group, L.P., Wells Fargo Securities, LLC, William Blair & Company, L.L.C., NASDAQ OMX Group, Incorporated, Lawrence Corneck, individually and on behalf of all others similarly situated, Jill D. Simon, Citigroup Global Markets Inc., Allen & Facebook (sic) LLC, William Blair & Facebook (sic) LLC, M.R. Beal & Facebook (sic) Incorporated, Cowen and Facebook (sic) LLC, Stifel Nicholas & Facebook (sic) Incorporated, Samuel A. Ramirez & Facebook (sic) INC, Kevin Hicks, individually and on behalf of all others similarly situated, Linh Luu, individually and on behalf of all others similarly situated, Harvey Lapin, individually and on behalf of all others similarly situated, King & Associates, Inc., David E. (sic) Ebersman, Nick E. Tran, The NASDAQ Stock Market L.L.C., a Foreign Limited Liability Company, NASDAQ Stock Market, Incorporated, NASDAQ OMX Group, Incorporated, Uma M. Swaminathan, Robert Greifeld, Anna M. Ewing, Marc L. Andreessen, Defendants.

United States Court of Appeals, Second Circuit.

Decided: November 3, 2016.


Attorney(s) appearing for the Case

JEFFREY S. ABRAHAM ( Mitchell M.Z. Twersky & Philip T. Taylor on the brief), Abraham, Fruchter & Twersky, LLP, New York, NY, for Plaintiff-Appellant.

JAMES P. ROUHANDEH ( Charles S. Duggan & Andrew Ditchfield on the brief), Davis Polk & Wardwell LLP, New York, NY, for Defendants-Appellees Lead Underwriters.

Andrew B. Clubok , Kirkland & Ellis LLP, New York, NY, for Defendant-Appellee Facebook, Inc.

Michael A. Conley , John W. Avery , Nicholas J. Bronni , Securities and Exchange Commission, Washington, DC, for Amicus Curiae Securities and Exchange Commission.

Before: WINTER, LOHIER, and CARNEY, Circuit Judges.


Robert Lowinger appeals from Judge Sweet's dismissal of his complaint pursuant to Fed. R. Civ. P. 12(b)(6). The complaint asserted claims under the Securities Exchange Act of 1934, 15 U.S.C. § 78p(b), against, inter alia, appellees Goldman Sachs & Co., Morgan Stanley & Co., LLC, and J.P...

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