Xerox Wins Summary Judgment in 13‑Year‑Old Securities Class Action

On March 29, 2013, Judge Alvin W. Thompson of the U.S. District Court for the District of Connecticut entered summary judgment in favor of Cravath’s client, Xerox Corporation, and dismissed, in its entirety, the long‑running securities class action In re Xerox Securities Litigation.

Plaintiffs filed this class action on December 9, 1999, on behalf of all purchasers of Xerox’s common stock from October 22, 1998 through October 7, 1999, alleging that Xerox and certain of its former executives committed securities fraud by misrepresenting the success of Xerox’s 1998 global restructuring program. Specifically, Plaintiffs alleged that Defendants claimed the benefits of the restructuring program without disclosing that problems associated with one of the restructuring initiatives had negated the benefits.

The Court concluded, in a 98‑page opinion, that Plaintiffs had failed to create a genuine issue of material fact for trial and entered judgment in Xerox’s favor, holding that Plaintiffs had failed both (i) to establish an actionable misstatement or omission; and (ii) to demonstrate loss causation.

The Cravath team included partner J. Wesley Earnhardt.