Evanston Police Pension Fund v. McKesson Corporation
- Charles Breyer
- 3:18-cv-06525
- U.S. District Court · Northern District of California
- 1
In Evanston Police Pension Fund v. McKesson, Judge Breyer granted class certification for stock purchasers, while allowing later amendment and a possible partial summary-judgment motion.
The certified class consists of all persons and entities who acquired McKesson common stock between October 24, 2013, and November 3, 2016. The order also affects McKesson and the other defendants by allowing the class to proceed while permitting a later request to amend the class and a possible partial summary-judgment motion.
What happened
In Evanston Police Pension Fund v. McKesson Corporation, the plaintiffs asked the court to certify a class of people and entities who acquired McKesson common stock between October 24, 2013, and November 3, 2016. McKesson did not oppose certification but argued that the class should exclude people who acquired the stock after January 11, 2016.
The court granted the class-certification motion in full. It said the existing record did not establish that the November 3, 2016 disclosures failed to cause a decline in McKesson’s stock price. The court also said McKesson’s arguments focused on the causes of later economic losses rather than whether the market price was reliable when the relevant transactions occurred.
The court certified the class but stated that it could later amend the class. It also allowed McKesson to file a motion for partial summary judgment on the disputed issues within 60 days after the order. Judge Charles R. Breyer issued the order.
The detailed version
- Evanston Police Pension Fund v. McKesson Corporation · No. 3:18-cv-06525
- Charles Breyer
- Apr. 8, 2021
Background
The plaintiffs moved for class certification in a securities case involving McKesson common stock. They proposed a class covering all persons and entities who acquired McKesson common stock between October 24, 2013, and November 3, 2016.
McKesson did not oppose class certification generally. It argued, however, that the class should exclude people and entities that acquired McKesson stock after January 11, 2016.
Court’s reasoning
The court stated that it could not determine from the existing record that the seemingly significant disclosures on November 3, 2016, did not cause a decline in McKesson’s stock price. The court also concluded that McKesson’s price-impact arguments addressed the causes of later economic losses rather than the integrity of the market price when the relevant stock transactions occurred.
Ruling and next steps
The court granted the motion for class certification in full. It certified the proposed class while stating that the class could later be amended. Because the parties had developed the issues raised in the motion, the court allowed McKesson to file a motion for partial summary judgment on those issues within 60 days from the date of the order. Judge Charles R. Breyer signed the order.
Read the full 1-page opinion on CourtListener, the free public archive maintained by the Free Law Project.