Section 12(a)(2)

SDNY Dismisses Securities Class Action Against Barclays

On January 5, 2011, Judge Paul A. Crotty of the Southern District of New York granted defendant Barclays’s Motion to Dismiss claims under Sections 11, 12(a)(2) and 15 of the Securities Act that alleged that Barclays failed to properly disclose and account for its RMBS-related exposure in the offering documents for Barclays ADS issued between April 2006 and April 2008. The court found that the plaintiffs did not have standing to pursue Section 12(a)(2) claims because they failed to alleged that they had bought shares directly from the defendants, that many of the claims were time-barred because they were filed more than one year after plaintiffs had sufficient information to be on inquiry notice of the alleged mis-statements, and that the remaining allegations were insufficient to state a claim. Decision.