Ninth Circuit Holds That Securities Class Action Based on Violations of Ethics Code Properly Dismissed

On January 19, 2017, the Ninth Circuit affirmed the dismissal of a shareholder class action lawsuit alleging securities fraud violations, arising out of Hewlett-Packard’s former CEO’s alleged misrepresentations about HP’s ethical compliance.  In a case of first impression, the Ninth Circuit held that there was no actionable securities fraud claim where a CEO violates the corporation’s corporate code of ethics, even after publicly touting the corporation’s high standards for ethics and compliance. Continue reading “Ninth Circuit Holds That Securities Class Action Based on Violations of Ethics Code Properly Dismissed”