Collins & Aikman Corporation et al v. Stockman et al

Filing 176

REPORT AND RECOMMENDATION: The Court recommends the following: 1.As Plaintiff has requested, Count I of the Complaint (D.I. 90 ) alleging violations of Section 10(b) of the Exchange Act and Rule 10b-5 be DISMISSED as against defendants Barnaba, Krau se, Becker, Evans, Hess, Tredwell, McConnell, Valenti, Galante, and Koth.2.The motions to dismiss Count I alleging violations of Section 10(b) of the Exchange Act and Rule 10b-5 as against defendants Stockman (D.I. 115 ), Stepp (D.I. 104 ), Cosgrov e (D.I. 97 ), and McCallum (D.I. 99 ) be DENIED.3.As Plaintiff has requested, Count II of the Complaint (D.I. 90 ) alleging violations of Section 14(a) of the Exchange Act and Rule 14a-9 be DISMISSED against all Director and Officer Defendants, i. e., defendants Stockman, Stepp, Cosgrove, Barnaba, McCallum, Krause, Becker, Evans, Hess, Tredwell, McConnell, Valenti, Koth, and Galante. 4.The motions to dismiss Count III alleging breach of fiduciary duty against defendants Stockman (D.I. 115 ), Stepp (D.I. 104 ), Cosgrove (D.I. 97 ), Barnaba (D.I. 128 ), and McCallum (D.I. 99 ) be DENIED. 5.The motions to dismiss Count III alleging breach of fiduciary duty against defendants Evans (D.I. 101 ), Hess (D.I. 131 ), Tredwell (D.I. 106 ), McConnell (D.I. 106 ), Valenti (D.I. 106 ), Krause (D.I. 118 ), Becker (D.I. 124 ), and the Heartland Entities (D.I. 110 ) be GRANTED.6.The motions to dismiss Count IV alleging unjust enrichment against defendants Becker (D.I. 124 ) and McCallu m (D.I. 99 ) be DENIED.7.The motions to dismiss Count IV alleging unjust enrichment against defendants Stockman (D.I. 115 ), Stepp (D.I. 104 ), Krause (D.I. 118 ), Cosgrove (D.I. 97 ), Barnaba (D.I. 128 ), Evans (D.I. 101 ), Hess (D.I. 131 ), Tredwell (D.I. 106 ), McConnell (D.I. 106 ), Valenti (D.I. 106 ), and the Heartland Entities (D.I. 110 ) be GRANTED.8.As Plaintiff has requested, Count V of the Complaint (D.I. 90 ) alleging common law fraud be DISMISSED as against defendants K rause, Becker, Evans, Hess, Tredwell, McConnell, and Valenti.9.The motions to dismiss Count V alleging claims for common law fraud against defendants Stockman (D.I. 115 ), Stepp (D.I. 104 ), Cosgrove (D.I. 97 ), Barnaba (D.I. 128 ), and McCallum (D.I. 99 ) be GRANTED. 10.The motions to dismiss Count VI alleging breach of express and implied contractual obligations against the Heartland Entities (D.I. 110 ) be GRANTED. 11.The motions to dismiss Count VII alleging claims for common law fraud against defendants PwC (D.I. 107 ) and KPMG (D.I. 120 ) be GRANTED. 12.The motion to dismiss Count VIII alleging claims for negligence/malpractice against defendant PwC (D.I. 107 ) be GRANTED. 13.The motion to dismiss Count IX alleging claims for negligence/malpractice against defendant KPMG (D.I. 120 ) be GRANTED. 14.The motion to dismiss Count X alleging a claim for breach of contract against defendant PwC (D.I. 107 ) be GRANTED. 15.The motion to dismiss Count XI alleging a claim for bre ach of contract against defendant KPMG (D.I. 120 ) be GRANTED. 16.The motions to dismiss Count XII alleging claims for aiding and abetting breaches of fiduciary duty against defendants PwC (D.I. 107 ) and KPMG (D.I. 120 ) be GRANTED. Please see R& R for further details. Objections to R&R due by 6/8/2009. Please note that when filing Objections pursuant to Federal Rule of Civil Procedure 72(b)(2), briefing consists solely of the Objections and the Response to the Objections. No reply in support of the Objections is permitted without leave of the Court. Signed by Judge Leonard P. Stark on 5/20/09. (ntl)

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