City of Pontiac General Employees' Retirement System v. Lockheed Martin Corp.
Plaintiff City of Pontiac General Employees’ Retirement System initiated a securities class action against Lockheed Martin Corp. and three executives, alleging intentional false and misleading statements regarding the performance of Lockheed Martin’s Information Systems & Global Systems division. The defendants moved to dismiss all counts. The court denied the motion to dismiss Count I, a claim of securities fraud under Section 10(b) and Rule 10b-5, finding sufficient allegations of falsity, materiality, and scienter, particularly for executive Linda Gooden. However, the court granted the motion to dismiss Counts II and III, asserting control person liability, due to the plaintiff's failure to present a plausible alternative theory where defendants were not primary violators. This memorandum details the reasons for these rulings.