Stradling Wins Dismissal in Complex Securities Case

Stradling partners Marc Schneider and Steve Ram, along with Andrew Mason and Michael Mosher, secured a recent win in a stock drop securities class action. On December 12, 2024, the district court granted Stradling’s motion to dismiss on behalf of the former CFO of Tattooed Chef, a plant-based food company. Plaintiffs alleged that certain of the company’s financial statements and projections were misleading regarding the accounting treatment of certain marketing expenses, ultimately causing Tattooed Chef to restate certain financial statements issued after the resignation of Stradling’s client. While Plaintiffs have an opportunity to file an amended complaint, the court noted specific challenges that plaintiffs would face in pleading a case against Stradling’s client.