Delaware Business Litigation Report

The District Court Holds That Group of Investors Led By German Investment Firm was Entitled to Appointment as Lead Plaintiff

In re Molson Coors Brewing Company Securities Litigation, 233 F.R.D. 147 (D.Del., December 02, 2005). In a consolidated securities fraud actions, plaintiffs filed competing motions for appointment of lead plaintiff and approval of selection of lead counsel. This case pitted two competing plaintiffs' firms against each other in a battle for the coveted lead counsel position. The court emphasized that the emphasis in its inquiry was not the fitness of counsel, but the fitness of the parties vying for the lead role. A putative lead plaintiff argued that a German entity would by subject to "unique and problematic defenses" by virtue of its status as a foreign corporation. The court dismissed this argument, citing several examples of where foreign corporations have been appointed lead plaintiff, and several where the putative lead plaintiff's counsel had advanced an identical argument only to have it fail. Accordingly, the Court appointed Metzler Investment GmbH as lead plaintiff and approved their choice of Milberg Weiss Bershad & Shulman, LLP as lead counsel. Share