Town of Davie Police Pension Plan v. Pier 1 Imports, Inc.
This putative class action involves lead plaintiff Municipal Employees' Retirement System of Michigan (MERS) suing Pier 1 Imports, Inc. and its former executives, Alexander W. Smith and Charles H. Turner, for securities fraud. MERS alleged violations of the Securities Exchange Act and SEC Rule 10b-5, claiming defendants misrepresented and concealed excessive inventory and markdown risks. The court found MERS failed to adequately plead material misrepresentation and a strong inference of scienter under heightened pleading standards. Consequently, the court granted the defendants' motion to dismiss, but allowed MERS 45 days to file an amended complaint.