Federal Court Confirms Dismissals Of $1.5 Billion Securities Class Action And Stockholder Derivative Suit Against Robbins Russell Client

On April 29, 2020, the U.S. District Court for the Eastern District of Pennsylvania turned back plaintiffs’ attempts to reinstate two lawsuits against Robbins Russell client Universal Health Services, Inc., and its directors and officers, that were dismissed last year.  Class-action and stockholder-derivative plaintiffs had moved to alter the judgments against them and obtain leave to amend their deficient pleadings.  In a pair of rulings, the district court denied those motions.

In the securities class action, the court held that plaintiffs’ proposed third complaint failed to state a claim against defendants, and would be futile to file.  The court reiterated that plaintiffs’ claims failed “to raise the requisite inference of scienter.” In the stockholder derivative suit, the court adopted Robbins Russell’s argument that plaintiffs’ motion was deficient, under Third Circuit law, because it failed to attached a proposed amended complaint.

Robbins Russell partners Gary Orseck, Matthew Madden, and Joshua Bolian, along with counsel Hunter Smith and associate John Goerlich, are handling these cases for UHS and its officers.