District Judge Dismisses With Prejudice Class Action Securities Litigation Against United Rentals Inc.

On August 25, 2009, United States District Judge Janet C. Hall dismissed with prejudice the second consolidated amended complaint in First New York Securities, L.L.C. v. United Rentals, Inc., a purported class action lawsuit against Kramer Levin client United Rentals, Inc., claiming violations of the federal securities laws. United Rentals is the largest equipment rental company in the world. In July 2007, United Rentals agreed to merge with affiliates of Cerberus Capital Management, L.P. Four months later, citing deteriorating market conditions, the Cerberus affiliates notified United Rentals that they were not prepared to proceed with the merger, allegedly prompting a significant decline in United Rentals' stock price. Judge Hall had dismissed the original amended complaint in March 2009, but granted class plaintiffs leave to amend. See DeCicco v. United Rentals, Inc., 602 F. Supp. 2d 325 (D. Conn. 2009). Plaintiffs filed a second consolidated amended complaint in April, again claiming that United Rentals’ disclosures concerning the risks that the merger would not be completed were deficient. In a 38-page soon-to-be published decision, Judge Hall granted, with prejudice, defendants’ motion to dismiss, finding that plaintiffs' revised complaint once again failed to state a claim for relief. See First New York Securities, L.L.C. v. United Rentals, Inc., No. 3:07-cv-01708 (JCH), __ F. Supp. 2d __, 2009 WL 2641473 (D. Conn. Aug. 25, 2009).

The Kramer Levin team included Litigation partners Gary P. Naftalis, Alan R. Friedman, Stephen M. Sinaiko, and associates Michael J. Sternhell, Jared I. Heller and Nakeeb Siddique.