Paul Hastings Secures Rare Complete Dismissal With Prejudice of Securities Class Action Claims Against Former iLearningEngines Independent Directors

Paul Hastings LLP secured a rare complete dismissal with prejudice of securities class action claims asserted against former independent directors of iLearningEngines. The Honorable Judge Deborah K. Chasanow of the District of Maryland granted the defendants’ motions to dismiss, denied plaintiffs’ motion to partially lift the PSLRA discovery stay, and dismissed the amended complaint in full, with prejudice, in a March 20 decision.

Plaintiffs sued the former outside directors based on their signatures on iLearningEngines’ June 21, 2024, S-8 and Aug. 9, 2024, S-1 registration statements. However, the court sided with the defendants, concluding that the named plaintiffs did not purchase directly in those offerings, and the Paul Hastings team then defeated plaintiffs’ fallback attempt to use discovery as a substitute for sufficient pleading.

Partner Brad Bondi led the Paul Hastings team, which included partners Scott Carlton and Ronald Anguas, of counsel Nick Griepsma and associate Lawrence Slusky.

About Paul Hastings

With widely recognized elite teams across 17 core practices, Paul Hastings is a premier law firm with a culture of excellence focused on providing intellectual capital and superior execution globally to the world’s leading investment banks, asset managers and corporations.