Dismissal Of Stock-Drop Claims Against Software Company Partially Overturned

Mealey's (August 25, 2022, 8:29 AM EDT) -- DENVER — A federal district court erred in dismissing claims brought pursuant to the Securities Exchange Act of 1934 against a software company and certain of its senior executives stemming from alleged misrepresentations the defendants made pertaining to the company’s workforce because although the lower court properly determined that all but one of the defendants’ alleged misstatements were inactionable, it’s scienter analysis was erroneous, a 10th Circuit U.S. Court of Appeals panel ruled Aug. 23 in affirming in part and reversing and remanding in part....