The lead plaintiff in the securities class action action against Herley Industries Inc., has been dismissed from that role. Why? Because it was none other than Galleon Management LP, whose founder Raj Rajaratnam has been charged with insider trading.
The court had named Galleon as lead plaintiff on September 30 — two weeks before Rajaratnam was arrested. Bloomberg reports that on December 11, Galleon’s lawyers asked the court to dismiss the hedge fund from the role. U.S. District Judge Juan R. Sanchez granted the motion on Friday, finding that Galleon “was appointed lead plaintiff more than three years ago, but it has since become clear the now-defunct Galleon can no longer continue in this role.”
Sanchez appointed the Norfolk County Retirement System in Massachusetts as the new lead plaintiff.