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Jackson v. Avanos Med., Inc.

United States District Court for the Southern District of New York

March 31, 2019, Decided; March 31, 2019, Filed

No. 16-CV-05093-LTS

Opinion

Memorandum Order

On December 12, 2016, Lead Plaintiff Ronald Jackson ("Plaintiff") filed a Corrected Amended Complaint in this putative securities fraud class action against Avanos Medical, Inc. ("Avanos"), formerly known as Halyard Health, Inc.1 Kimberly-Clark Corporation ("Kimberly-Clark"), [*2]  Avanos Chief Executive Officer ("CEO") Robert E. Abernathy ("Abernathy"), Avanos Chief Financial Officer ("CFO") Steven E. Voskuil ("Voskuil"), Kimberly-Clark Executive Chairman and CEO Thomas J. Falk ("Falk"), and former Kimberly-Clark CFO Mark A. Buthman ("Buthman," together with Abernathy, Voskuil, and Falk, the "Individual Defendants") seeking to recover damages allegedly caused by Defendants' violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act") and Rule 10b-5 promulgated under Section 10(b). (Corrected Amended Class Action Complaint ("CACAC"), Docket Entry No. 50.) On March 30, 2018, the Court granted Defendants' motion to dismiss the CACAC in its entirety, with prejudice, and ordered the Clerk of Court to close the case. ("March Order," Docket Entry No. 80.)

On April 27, 2018, Plaintiff moved pursuant to Federal Rules of Civil Procedure 15(a), 59(e), and 60(b) for an order granting relief from the judgment entered upon the Court's March Order to permit Plaintiff to file his Proposed Second Amended Complaint. ("PSAC," Docket Entry No. 85-1, and Docket Entry No. 83.) Defendants jointly opposed Plaintiff's motion (Docket Entry Nos. 88 and 89); no reply papers were filed. The Court has considered carefully the parties' submissions [*3]  and, for the following reasons, the motion is denied in its entirety.

Background

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2019 U.S. Dist. LEXIS 55969 *; 2019 WL 1437517

RONALD JACKSON, individually and on behalf of all others similarly situated, Plaintiff, -v- AVANOS MEDICAL, INC., ROBERT E. ABERNATHY, STEVEN E. VOSKUIL, KIMBERLY-CLARK CORPORATION, THOMAS J. FALK, and MARK A. BUTHMAN, Defendants.

Subsequent History: Affirmed by Jackson v. Abernathy, 2020 U.S. App. LEXIS 16754 (2d Cir. N.Y., May 27, 2020)

Prior History: Jackson v. Halyard Health, Inc., 2018 U.S. Dist. LEXIS 54738 (S.D.N.Y., Mar. 30, 2018)

CORE TERMS

gowns, scienter, recklessness, compliance, futile