Schweiger v. Ultra Clean Holdings, Inc.

Background

Ofir Schweiger filed a putative class action against Ultra Clean Holdings, Inc., and two individuals. The complaint alleges that Defendants made materially false or misleading statements and omissions that artificially inflated the price of the company’s stock, violating Sections 10(b) and 20(a) of the Securities Exchange Act, Section 78u-4 of the Private Securities Litigation Reform Act, and related regulations.

Four putative class members moved to be appointed lead plaintiff and to have their chosen counsel approved. Two later withdrew their motions, and one filed a notice of non-opposition. The court therefore considered Mr. İlaslan’s unopposed motion.

Appointment as Lead Plaintiff

Under the Private Securities Litigation Reform Act, the court must appoint the class member most capable of adequately representing the class. The statute presumes that the most adequate plaintiff is the person who timely responds to the required notice, has the largest financial interest in the requested relief, and makes an initial showing that the requirements of Federal Rule of Civil Procedure 23 are satisfied.

The court found that Mr. İlaslan timely filed his motion by the May 23, 2025 deadline. It also found that he had the greatest financial interest, reporting losses of $23,580 from purchasing 1,500 shares during the class period. No other movant showed a larger financial stake.

For Rule 23, the court considered adequacy and typicality. It found that Mr. İlaslan had shown that his interests aligned with those of other class members, that he wanted to pursue the case for the class, and that no unique defenses against him had been identified. The court also found his claims typical because he allegedly suffered the same type of injury as other class members from the same alleged misrepresentations and omissions. The court therefore appointed Mr. İlaslan as class representative.

Approval of Lead Counsel

Mr. İlaslan selected the Rosen Law Firm P.A. as lead counsel. The court found that the firm’s résumé and extensive experience in securities-fraud litigation demonstrated that it was a reasonable choice. The court appointed Rosen Law as lead counsel.

Disposition

Judge Jacquelyn Scott Corley granted Mr. İlaslan’s motion for appointment as lead plaintiff and approval of his selection of Rosen Law as lead counsel. The order assigned lead counsel responsibility for pleadings, motions, discovery and depositions, settlement negotiations, pretrial proceedings, trial preparation and trial, and supervision of other matters concerning prosecution or resolution of the consolidated action. The order disposed of Docket Nos. 19, 23, 26, and 30.