In Packaging Dive’s recent article, “GPI hit with 2nd securities lawsuit from shareholders,” Emmanuel Hurtado discusses the likelihood of case consolidation in the wake of a second class action lawsuit being filed against Graphic Packaging International, the company’s current CEO and eight sitting board members, and its former CEO and CFO.
Brought against the company by a shareholder, the latest suit alleges that the company violated securities law violations and fiduciary duty breaches. It is reported in the securities filing that the allegations and relief being sought are “substantially similar” to a previous case filed in May against the company’s former CEO and CFO.
When asked why both cases have been allocated to the same judge, Jeanette A. Vargas, Emmanuel explains to Packaging Dive, “This is purely an administrative step meant to keep related matters in front of one judge for consistency and efficiency — it does not mean the cases are combined into a single lawsuit.”
The article explored whether “case consolidation,” in which one party requests to merge the two cases as they hold similarities and are under the same judge, is likely here. As Emmanuel explains, “no parties have filed such motion (Case consolidation) in the GPI case, but it’s still possible that it could happen.”
“Both cases were filed relatively close together in time, suggesting they’re not at notably different stages,” Emmanuel continues, emphasizing, “this could reasonably be seen as a good candidate for consolidation,” though he stresses that it remains unclear whether a motion will be filed.
