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The District Court (Judge Ann C. Williams, presiding)
dismissed the Federal claims set forth in the Complaint, holding
that petitioner lacked the requisite constitutional standing to
sue, and refused to exercise pendant jurisdiction over the State
law claims. FMC Corp. v. Boesky, 673 F. Supp. 242 (N.D. Ill.
1987). The Court of Appeals for the Seventh Circuit reversed,
holding that petitioner had the requisite standing to sue in
Federal court by virtue of the wrongful misappropriation of its
confidential business information and the use of that information
to further insider trading. FMC Corp. v. Boesky, 852 F.2d 981
(7th Cir. 1988). Subsequently, on or about September 23, 1988,
petitioner filed a first amended complaint (First Amended
Complaint) containing 16 counts, all of which alleged again that
petitioner suffered damages in excess of $235 million. Paragraph
64(b) of the First Amended Complaint alleged as "Adverse
Financial Consequences to FMC" that
The price of FMC's common stock was
wrongfully manipulated, causing FMC to revise
its planned recapitalization and pay
approximately $220 million more in cash than
FMC would have paid for its publicly held
common stock, tendered in response to FMC's
offer to purchase Old FMC Stock and to sell
New FMC Stock; * * *
Upon remand, the District Court dismissed, with prejudice,
for failure to state a claim, petitioner's claims under the
securities laws, holding that petitioner had failed to establish
that it suffered any actual economic damages from the defendants’
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