Dist. Ct. did nor err in dismissing for failure to state viable claim plaintiff’s section 10(b) of Securities and Exchange Act claim, alleging that defendants issued false statements about defendant’s integration of another company’s assets. Record showed that defendant gave optimistic projections of costs associated with said integration, and plaintiff failed to allege that any statement was untrue, but only alleged that said statements were misleading, where defendant failed to provide additional information about ongoing costs of consolidation. Private Securities Litigation Reform Act exempts certain forward-looking statements from liability, and instant statements made by defendant either slightly missed its forecast of actual profit margin, were based on only limited knowledge and optimism, concerned only predictions of future or constituted permissible puffing.
Federal 7th Circuit Court
Civil Court
Securities Exchange Act