Skechers USA Inc. of Manhattan Beach on Monday won a ruling from the U.S. Ninth Circuit Court of Appeals that affirmed the dismissal of the shareholder class-action lawsuit filed against the company in 2003.
The shareholders alleged that the company and five executives made optimistic projections in press releases and conference calls and sold $42 million in stock despite their knowledge that the company was experiencing a decrease in demand.
The district court held that, under the Private Securities Litigation Reform Act, the shareholders could not state a claim against Skechers and the Ninth Circuit upheld that ruling.
"We have said continuously that neither the company nor the individual defendants engaged in any wrongful conduct whatsoever and we have been vindicated by the courts again and again for the past four years," said co-defendant and chief operating officer, David Weinberg, in a statement after the ruling.
Shares in Skechers dipped 47 cents Monday.
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