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Where plaintiffs who brought a putative class action on behalf of purchasers of a company’s securities challenged the district court’s dismissal for failure to state a claim, the judgment is reversed and remanded in part because the plaintiffs adequately alleged knowledge or intent since the CEO’s statements about a subsidiary’s expected performance were not immaterial and his omissions were misleading, and the complaint also sufficiently argued that the CEO had actual knowledge that his statements were misleading, so the court erred in dismissing Section 10(b) and Rule 10b-5 claims, and the court also erred in dismissing a secondary liability claim, but the plaintiffs did not show that the court erred in finding no loss-causation for the period between November 12, 2013 and January 2, 2014.
Judgment is affirmed in part; reversed and remanded in part.
Rand-Heart of New York, Inc. v. Dolan (MLW No. 68785/Case No. 15-1838 – 12 pages) (U.S. Court of Appeals, 8th Circuit, Benton, J.) Appealed from U.S. District Court, District of Minnesota, Magnuson, J. (Thomas J. McKenna, New York, argued for appellant; Shawn M. Perry appeared on the brief) (Wendy J. Wildung, Minneapolis, argued for appellee; Justin P. Krypel appeared on the brief).
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