In re Polaroid Corp. Securities Litigation (465 F. Supp. 2d 232, 2006)

OPINION & ORDER

STEIN, District Judge.

This dispute arises from the demise of the former instant photography giant, Polaroid Corporation, whose fortunes fell when confronted by the advent of digital photography. Lead plaintiffs, the Constance Sczesny Trust and the Edward R. Sczesny Trust, who bring this consolidated action on behalf of a proposed class of individuals who purchased Polaroid securities during the period March 28, 2000 through August 9, 2001, seek to recover losses they allegedly suffered due to what they characterize as Polaroid’s “accounting shenanigans” that were approved by its outside auditor, KPMG LLP. In the Amended Consolidated Class Action Complaint, plaintiffs assert claims pursuant to sections 10(b) and 20(a) of the Securities Exchange Act of 1934, 15 U.S.C. §§ 78j(b) and 78t, and Rule 10b-5, 17 C.F.R. § 240.10b-5 promulgated thereunder. Defendants — KPMG and three former executives of the now defunct Polaroid Corporation — have moved to dismiss the complaint. Because certain of plaintiffs’ claims are barred by the applicable statute of limitations, and because plaintiffs have failed to plead scienter with the requisite particularity as to the remaining claims, defendants’ motion is granted.

TABLE OF CONTENTS

I. FACTUAL BACKGROUND. CD CO