NI Securities Litigation: Insider Trading Claims Survive

Because early overtures to NI from Emerson were not publicly disclosed, and the company re-purchased shares during this period a class action suit was filed on November 30, 2023.

On September 6, 2024, U.S. District Judge Denise Cote dismissed all claims against former NI CFO Karen Rapp, and also dismissed the claim of lack of public disclosure.  However the claim of insider insider trading in August and September of 2022 survives. Following is the court’s summary of the ruling:

IN RE NATIONAL INSTRUMENTS CORPORATION SECURITIES LITIGATION, 
No. 1:2023cv10488 - Document 42 (S.D.N.Y. 2024

Court Description: OPINION AND ORDER: The defendants’ April 26, 2024 motion to dismiss is granted in part. All claims against defendant Karen Rapp are dismissed. All claims based on a violation of§ l0(b) and Rule 10b-5(b) pursuant to a misrepresentation or omission theory are dismissed. The claim against NI for a violation of§ l0(b) and Rule l0b-5 on a theory of insider trading during August and September of 2022 survives. The claims against Eric Starkloff and Michael McGrath for control person liability in connection with that insider trading claim also survive. Karen Rapp terminated. (Signed by Judge Denise L. Cote on 9/6/2024) (vfr)

A pdf of the entire 23-page ruling can be found here NI Sept 2024 ruling. This was downloaded from  here.

You can follow the detailed case filings here.