Paul, Weiss is widely recognized as having one of the nation’s preeminent securities litigation and regulatory practices. For two decades, our lawyers have guided global corporations and financial institutions through a series of “bet-the-company” securities-related crises, consistently reducing or eliminating their most damaging claims and negotiating favorable resolutions.
Paul, Weiss Wins Dismissal Without Leave to Amend in California False Claims Act Lawsuit
- Client News
- March 26, 2019
Paul, Weiss won the dismissal with prejudice of California False Claims Act claims against Citigroup Inc. and Citigroup Global Markets Inc.
The plaintiffs, private individuals suing on behalf of the state of California, alleged that Citi and other municipal bond underwriters defrauded the state by falsely representing that they would underwrite the state’s bonds and obtain the “best price” and “lowest yield” on those bonds. The California Superior Court held that the plaintiffs failed to plead their claims with the heightened particularity required by the false claims act and, in particular, failed to articulate specific facts showing how the defendants’ representations were false when made or that the defendants acted with scienter. Moreover, the court dismissed the plaintiffs’ claims with prejudice because they failed to show that these pleading defects were curable.
The Paul, Weiss team included litigation partners Susanna Buergel and Jane O’Brien.