Paul, Weiss won the affirmance of the dismissal of a securities class action against General Atlantic LLC (GA), its portfolio company TriNet Group, Inc., various TriNet officers and directors, and various underwriters.
The complaint, filed in 2015 in the Northern District of California on behalf of a putative class of shareholders in TriNet, a human resources outsourcing company, alleged that TriNet’s offering materials and other filings misrepresented TriNet’s risk assessment and data analytics capabilities and its exposure to medical and workers compensation insurance claims. The TriNet shareholders alleged that the misrepresentations inflated Trinet’s share value, which subsequently sank following a number of adverse disclosures concerning such claims.
In affirming the district court’s dismissal of all claims, the Ninth Circuit found that the plaintiff had failed to allege a false statement of material fact. The court held that at least one of the challenged statements was an opinion regarding which the plaintiff had failed to allege subjective falsity, and that the plaintiff had not made a sufficient case that the other statements were false when made.
The Paul, Weiss team included litigation partner Allan Arffa (Picture), who argued the appeal, and of counsel Charles Davidow.
Law Firms: Paul Weiss Rifkind Wharton & Garrison;
Clients: General Atlantic;