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RAFFAELE BRANCA, CAR
CONRAD, and MICHAEL P.
et al.,
Plaintiffs,
V. 9 Civil Action No.
PAYMENTECH, INC., F W A FIRST USA 6
PAYMENTECH, TNC., PAMELA 5
i
H. PATSLEY, and DAVID W. TRUETZEL, 5
§
Defendants. 4
MEMORANDUM OPINION A N D ORDLK
Before the court
is Defendants' Motion to Dismiss Plaintiffs' Second Amended
Complaint, filed November
20, 1998. After careful consideration ofthe motion,
voluminous supplemental filings submitted by the parties, and the applicable law, the
s
Defendants' Motion to Dismiss and dismisses Plaintiffs' claims with prejudice.
1. Fa
Plaintiffs are a class ofpersons who purchased common stock ofDefendant Paymentech,
("Paymentech") during the period bctween January 22, 1997 and September 24,1997. Paymentech
is a corporation whose business involves the processing of electronic payments. Paymentech's
business includes processing bank card transactions, issuing commercial card products,
commercial card payments and information, and providing third-party credit
SNIPPETS:
Complaint, filed November
Defendants' Motion to Dismiss and dismisses Plaintiffs' claims with prejudice.
Plaintiffs are a class ofpersons who purchased common stock ofDefendant Paymentech,
business includes processing bank card transactions, issuing commercial card products,
Defendant Pamela Patsley
was President and Chief Executive Officer of Paymentech during the class period.
unusual and related-party transactions in the last three quarters of the 1997 fiscal year.
ADDliCabk Pleading Standards
The court cannot dismiss Plaintiffs' claims under Ruie 12unless it appears beyond
doubt that they can prove no set of facts entitling them to relief.
The Plaintiffs' factual allegations are accepted as true when considering
Inc., 677 F.2d 1045, 1050 (S* Cir.
To state a claim for securities fraud in violation of section 10and Rule
The PSLRA has further reinforced this particularity requirement with respect to pleading
Scienter Reauirement
claims must allege facts demonstrating scienter.
must set forth specific facts to support an inference of fraud.
or allege facts showing a motive to commit fraud and a clear
Although the P S L M was not implicated in that case, the court did express, in dicta, its
to the supplemental filings submitted by the parties, reveals that since the parties
Plaintiffs' securities fraud claims are also subjcct to the special pleading requirements
instead constitute an attempt to use "group pleading" in order to allege fraud.
Paymentech had plans for a target of 2O-25% revenue growth.
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