Munger, Tolles & Olson Wins Summary Judgment for Intel Corporation in Securities Class Action
Munger, Tolles & Olson earned a well-deserved “Runner-Up” recognition in The American Lawyer’s Litigator of the Week column after winning summary judgment in a securities class action facing Intel Corporation related to the 2019 merger between Cloudera, Inc. and Hortonworks, Inc.
The lawsuit alleged that Intel, as a major shareholder and business partner of Cloudera, was liable for misleading statements and omissions in the offering materials for the merger between Cloudera and Hortonworks. Plaintiffs accused Cloudera of making misleading statements regarding its cloud products, which, according to the lawsuit, caused its stock price to plummet after the merger. They sought damages based on the decline in Cloudera’s share price.
During a hearing before Santa Clara Superior Court Judge Charles Adams on March 14, 2024, MTO argued for summary judgment and the complete dismissal of all claims against Intel. MTO argued that Intel was not liable as a “controlling person” for actions taken during the Cloudera-Hortonworks merger and presented evidence that Intel did not control or influence Cloudera’s general affairs, board decisions or offering materials.
The court agreed with MTO that Intel was not liable under the Securities Act of 1933 and was entitled to summary judgment on all claims. The court also found that Cloudera did not make any materially false or misleading statements or omissions in its offering materials.
The MTO legal team representing Intel included Gregory Stone, Jeffrey Wu, John Gildersleeve, Rebecca Sciarrino and Simon Zhen.
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About MTO’s Securities Practice
Our unwavering focus on disposing of shareholder claims quickly and effectively, often in unprecedented circumstances, sets us apart. In recent years, we have guided clients through securities and corporate governance disputes arising from the effects of climate change, the opioid crisis and the “MeToo” movement.
Our securities team is ranked nationally by Chambers USA and in 2024 was named a Securities Practice Group of the Year by Law360. We help solve problems from securities class actions after stock-price declines, to derivative actions against directors and officers, to corporate governance and M&A litigation, to SEC investigations and related pre-litigation challenges.