In Re Cirrus Logic Securities Litigation

How courts have described this case

Verbatim parenthetical descriptions written by other courts when citing this decision. Ranked by citation-network relevance.

• noting that “companies have a duty to disclose ... financial data and other material information upon which” a reasonably certain “internal forecast is based”
• frank consultation with auditor about an accounting matter tends to negate inference of intent to deceive
• voluntarily consulting with independent accountant, making full disclosure, and seeking guidance and approval negates any inference that financial transaction was made with intent to defraud
• Even if Plaintiffs raised an issue of material fact that company violated GAAP, the review and approval by auditor “would have negated any inference of scienter.”
• “GAAP is not a set of rules ensuring identical treatment of identical transactions; rather, it tolerates a range of reasonable treatments, leaving the choice among alternatives to management.”
• exception exists when company involved itself in preparation of third-party analysis

Source: CourtListener parenthetical corpus (CC0).