United States v. Endicott

This is an appeal from three orders which together granted summary judgment against plaintiffs on all of their claims under the Securities Exchange Act of 1934, 15 U.S.C. § 78. Plaintiffs allege that Apple Computer Inc. and its top officers misled the market about the capabilities and prospects of a novel office computer and disk-drive system. They claim that they purchased Apple stock in reliance on the artificially high stock price resulting from Apples misrepresentations, and that they suffered actionable damages when the true facts about the computer became known and Apples stock price fell by almost 75%. The trial court granted summary judgment on the grounds that each of Apples alleged misstatements was either immaterial or made without scienter. We affirm in part, reverse in part, and remand.