According to the court order posted on the site, the court granted the defendant's motion to dismiss the stockholders' class action that alleged that the corporation made misrepresentations regarding the value of its stock. According to the motion granting dismissal, the court found that none of the corporation's press releases contained any comments regarding the profitability or projection of anticipated earnings. Furthermore, the court noted that the corporation was under no duty to update the public regarding the status of the financial quarter already in progress. Finally, the court ruled that the stockholders failed to adequately plead scienter. The court explained that it would not infer fraudulent intent from the mere fact that some officers sold stock.
The original complaint alleges various security laws violations arising under Sections 10(b), 20(a) and 20A(a) of the Exchange Act of 1934 and Rule 10b-5 thereunder. The complaint alleges, among other things, that the Registrant, intentionally or recklessly, failed to disclose adverse material financial information regarding its silicon wafer business in the fourth quarter of 1996.