In Re Kidder Peabody Securities Litigation

How courts have described this case

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

• holding that alleged false profits may still be material even if only affecting total profits by between 1% and 2.54%
• holding that a corporate subsidiary could be held primarily hable under Section 10(b) for statements made by the corporate parent where it was alleged that the subsidiary was the “original and knowing source” of the misstatements
• noting that while amount of “false profits may have been minor compared to GE’s earnings as a whole, they were quite significant to” a subsidiary’s profits, which, “in turn, represented a significant portion of GE’s balance sheet”
• relying on Basic and declining to hold as a matter of law that misstatements affecting profits by no more than 2.54% were immaterial
• noting that profit statements and financial reports are of particular interest to investors
• finding adequate pleading of scienter where plaintiffs submitted evidence that defendants received substantial bonuses based upon reported profits

Source: CourtListener parenthetical corpus (CC0).