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O’Melveny’s Representation of American Apparel Noted in Law360 ArticleJanuary 17, 2012
O’Melveny & Myers LLP’s representation of American Apparel is noted in the January 13, 2012, Law360 article “American Apparel Gets Investor Class Action Knocked Out.” According to the article, a US District Judge granted O’Melveny’s motion to dismiss the suit, finding that the statements on which the plaintiffs’ claims relied did not satisfy the standards for pleading fraud. In granting O’Melveny’s motion to dismiss, Judge Morrow agreed that alleging that certain predictions proved incorrect is not the same as alleging with particularity facts that show the initial prediction was a falsehood. “The complaint does not allege facts showing that, at the time the statements were made, American Apparel was already experiencing difficulties producing the shipping product,” Judge Morrow said. Plaintiffs have 45 days within which to amend their complaint. The O’Melveny team was led by Los Angeles-based Securities Litigation partner Seth Aronson and included counsel Lindsay Geida and associate Jennifer Cheng.