Wednesday, May 24, 2006

Warn Me

You know you’re in bad shape when “the very problems that Plaintiffs identify as the actual cause of Defendants' eventual need to warn that they would not meet analysts' expectations for the third quarter are the same as the problems that Defendants warn of in their cautionary language.” At least that’s how Judge James A. Beaty, Jr. (M.D. N.C.) sees things in the Laboratory Corporation of America securities class action, which he tossed because, among other things, “Defendants identified the specific risks that caused their forecasts to vary.”

It's not clear from the Opinion if Plaintiffs will get another chance to amend.

You can read In re Laboratory Corporation of America, issued May 18, 2006, at 2006 U.S. Dist. LEXIS 31232.

Nugget: “Moreover, the Court notes that Plaintiffs have failed to show that these statements were actually false.”

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