Sanofi-aventis in Appellate Victory Upholding Dismissal of Securities Fraud Suit
April 20, 2006
Cleary Gottlieb successfully represented sanofi-aventis in defeating an appeal to the New York Appellate Division, First Department from sanofi-aventis’ prior victory in winning the dismissal of a securities fraud claim brought by the heirs of French financier Edouard Stern. The suit alleged that the plaintiffs were fraudulently induced to buy shares of Rhodia, a French company that was spun off by sanofi-aventis’ predecessor, on the Paris Stock Exchange. Because most of the witnesses and evidence are located in France, the appellate court unanimously affirmed the trial court’s dismissal of the lawsuit on forum non conveniens grounds, finding that French courts would provide a more appropriate forum.