On March 22, 2018, WLF filed a brief with the U.S. Supreme Court urging it to review, and ultimately overturn, a misguided Ninth Circuit decision that misconstrued the “Safe Harbor” provision of the Private Securities Litigation Reform Act. The case arises 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 for the 2012 and 2013 fiscal years. In arguing that QSI’s forward-looking statements were accompanied by meaningful cautionary language and thus 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.
WLF had also filed a brief with the Ninth Circuit supporting the Appellant’s request for a rehearing en banc. The court denied the Appellant’s request.
On November 27, 2018, following the district court’s acceptance of the parties’ proposed settlement, the Supreme Court dismissed the petition.