HORIZON ASSET MANAGEMENT INC. v. H & R BLOCK, INC.

Nos. 08-1593, 08-1670.

580 F.3d 755 (2009)

HORIZON ASSET MANAGEMENT INC., Plaintiff/Appellant, Michael Nettie; Iron Workers Local 16 Pension Fund; Feivel Gottlieb; Adele Lebowitz; Phyllis J. Winters; Doris Staehr; Raymond J. Kadigan; Momentum Partners; Stephen T. Hibbard, Plaintiffs, v. H & R BLOCK, INC.; Mark A. Ernst; William L. Trubeck, Defendants/Appellees, Frank J. Cotroneo: James W. Yabuki; Bret G. Wilson; Thomas M. Bloch; Donna R. Ecton; Henry F. Frigon; Roger W. Hale; Louis W. Smith; Rayford Wilkins, Jr.; David Bak, Defendants. Horizon Asset Management Inc.; Michael Nettie, Plaintiffs, Iron Workers Local 16 Pension Fund, Plaintiff/Appellant, Feivel Gottlieb; Adele Lebowitz; Phyllis J. Winters; Doris Staehr; Raymond J. Kadigian, Plaintiffs, Momentum Partners, Plaintiff/Appellant, Stephen T. Hibbard, Plaintiff, v. H & R Block, Inc.; Mark A. Ernst; William L. Trubeck; Frank J. Cotroneo; James W. Yabuki; Bret G. Wilson; Thomas M. Bloch; Donna R. Ecton; Henry F.D. Seip; Jeffrey E. Nachbor; Melanie K. Coleman, Defendants/Appellees.

United States Court of Appeals, Eighth Circuit.

Filed: September 9, 2009.


Attorney(s) appearing for the Case

Solomon B. Cera, argued, Thomas C. Bright and Gwendolyn R. Giblin, San Francisco, CA and Patrick J. Stueve and Matthew L. Dameron, Kansas City, MO, on the brief, for appellant Horizon.

Michael W. Stocker, argued, Ira A Schochet, Laurence D. Paskowitz, and Roy L. Jacobs, New York, NY and Diane A. Nygaard, Kansas City, MO on the brief, for Local 16.

Thomas Walsh, argued St. Louis, MO, W. Perry Brandt and Robert M. Thompson, Kansas City, MO, Thomas H. Golden and Deirdre N. Hykal, New York, NY on the brief, for appellees in 08-1593; Thomas H. Golden, New York, NY Steven M. Schatz, Jerome F. Birn, Jr., and Gregory L. Watts, Palo Alto, CA, on the brief, for appellees in 08-1670.

Before RILEY, BOWMAN, and COLLOTON, Circuit Judges.


COLLOTON, Circuit Judge.

This case involves two appeals arising from the dismissal of a putative consolidated class action against H & R Block, Inc. ("Block"), and individual defendants who are corporate officers or directors of Block. First, Horizon Asset Management Inc. ("Horizon") appeals the merits of the dismissal, arguing that the district court erred in concluding that Horizon failed adequately to plead scienter under the heightened pleading requirements...

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