In re: Quality Systems, Inc. Securities Litigation
- Case Date: 9/15/2017
- Project Name: Civil Justice Reform
On September 29, 2017, the U.S. Court of Appeals for the Ninth Circuit denied a petition requesting rehearing en banc in an important securities case. The denial was a setback for WLF, which filed a brief in the case criticizing a misguided panel decision that misconstrued the “Safe Harbor” provision of the Private Securities Litigation Reform Act. The case arose from a putative securities class action in which the plaintiffs allege that Quality Systems, Inc. (QSI) made false or misleading statements about the company’s economic performance in violation of § 10(b) of the Securities Exchange Act. Most of the challenged statements were forward-looking projections of QSI’s financial performance. In arguing that QSI’s forward-looking statements were protected under the Safe Harbor, WLF reminded the court that Congress has determined that incentivizing companies to provide projected earnings (qualified by meaningful cautions) outweighs any risk that companies may commit fraud in doing so.
|Rehearing denied. Monitoring for possible Supreme Court certiorari petition.|
More Information and Downloads:
9/15/2017: Download the Brief