New York — February 25, 2014 — The United States Court of Appeals for the Second Circuit has vacated the dismissal of insider trading claims brought against Xcelera Inc. (“Xcelera” or the “Company”) and certain of its corporate insiders. The case has been remanded for further proceedings to the U.S District Court for the District of Connecticut. The action alleges that the Xcelera corporate insiders purchased shares of Xcelera stock from public shareholders at an unfairly low price without making any disclosures concerning the Company’s financial condition and results of operations. Key to the Second Circuit’s decision were its holdings that: (1) the fiduciary duty implicated by insider trading is imposed and defined by federal common law; (2) there is no need to demonstrate reliance because Defendants omitted to disclose any facts concerning Xcelera’s financial condition or results of operations; and (3) scienter is properly alleged through Defendants’ trading in Xcelera stock while in possession of of material information which had not been publicly disclosed. The decision, which contains a more complete discussion, is available here.
If you are a former or current shareholder of Xcelera and would like to discuss this matter further, you may contact: Jeffrey S. Abraham or Philip T. Taylor of Abraham, Fruchter & Twersky, LLP at (212) 279-5050, or via e-mail at firstname.lastname@example.org or email@example.com.
Jeffrey S. Abraham
Philip T. Taylor
Abraham, Fruchter & Twersky, LLP
Telephone: (212) 279-5050