Fulton County Employees Retirement System v. MGIC Investment Corp.

Dist. Ct. did not err in dismissing for failure to state cause of action in plaintiff's lawsuit under Private Securities Litigation Reform Act alleging that defendant gave misleading statements in its quarterly earnings call regarding viability of its securities that were based on sub-prime, single-family residential-mortgage loans. While viability of said securities depended on ability of defendant to make its margin calls on said securities, defendant's partner had cash reserves of $150 million available on date of quarterly earnings call to make future margin calls, which supported defendant's claim that said securities had "substantial liquidity." Moreover, quarterly earnings call did not misrepresent past or current condition of subject securities, and defendant had no duty to foresee future with respect to said securities, even though record showed that defendant was unable to meet margin calls on said securities approximately two weeks after issuing instant quarterly earning call.