Norman Ottmann v. Hanger Orthopedic Group, Incorporated Ivan R. Sabel Richard A. Stein v. David Chopko Gary Backous, Movant-Appellants

How courts have described this case

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

• recognizing for the first time in this circuit that “a securities fraud plaintiff may allege scienter by pleading not only intentional misconduct, but also recklessness”
• holding that recklessness or intent is required to plead scienter rather than negligence
• noting that the lack of facts showing “a motive and opportunity to commit fraud . . . may be relevant to the scienter inquiry”
• finding that the plaintiff’s failure to allege facts showing how defendants should have been on notice of their revenue recognition errors prohibited any inference of scienter
• finding that although a truthful disclosure that reflects negatively on a company may not be adequate to correct an earlier misstatement, “it nonetheless militates against a finding that [defendants] acted with a culpable state of mind”
• affirming dismissal of securities fraud claims with prejudice after plaintiffs given opportunity to amend their complaint

Source: CourtListener parenthetical corpus (CC0).