9th Circ. Won't Revive Costco Investors' Internal Controls Suit

Law360 (July 20, 2021, 8:04 PM EDT) -- A panel of Ninth Circuit judges on Tuesday affirmed a lower court ruling tossing Costco Wholesale Corp. investors' claims that the retail giant's executives made deliberately reckless misrepresentations about internal controls in their public filings, concurring that the investors fell short of proving that the executives withheld knowledge of internal weaknesses.

The Ninth Circuit panel held in its unpublished opinion that the district court did not err in its dismissal with prejudice of the investors' suit, saying their amended complaint "failed to raise a strong inference that any senior controlling officer of Costco ... had the requisite scienter of deliberate recklessness."

The allegations...

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