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Saltzberg v. TM Sterling/Austin Associates, Ltd.

United States Court of Appeals, Eleventh Circuit
Feb 16, 1995
45 F.3d 399 (11th Cir. 1995)

Summary

holding that explicit cautionary language in private placement memorandum rendered alleged misstatements immaterial and made them not actionable under "bespeaks caution" doctrine

Summary of this case from Bryant v. Avado Brands, Inc.

Opinion

No. 93-8725.

February 16, 1995.

Steve Gard, Page Bacek, Atlanta, GA, Norman Rifkind, Beigel Sandler, Chicago, IL, for appellants.

James C. Grant, Alston Bird, Oscar N. Persons, Atlanta, GA, Walter G. Elliott, Elliott Blackburn, Valdosta, GA, for appellees.

Appeal from the United States District Court for the Northern District of Georgia.

Before EDMONDSON and CARNES, Circuit Judges, and HENDERSON, Senior Circuit Judge.


We affirm the grant of summary judgment to defendants in this action under section 10(b) of the Securities and Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. In doing so, we accept and apply the "bespeaks caution" doctrine as explained in In re Donald J. Trump Casino Sec. Litig, 7 F.3d 357 (3rd Cir. 1993).

The context in which a statement is made is important. When an offering document's projections are accompanied by meaningful cautionary statements and specific warnings of the risks involved, that language may be sufficient to render the alleged omissions or misrepresentations immaterial as a matter of law. The cautionary language used in the private placement memorandum in this case was no boilerplate and was not buried among too many other things, but was explicit, repetitive and linked to the projections about which plaintiffs complain. In the light of the cautionary language in this case, plaintiffs cannot show the necessary misstatement or omission of a material fact.

AFFIRMED.


Summaries of

Saltzberg v. TM Sterling/Austin Associates, Ltd.

United States Court of Appeals, Eleventh Circuit
Feb 16, 1995
45 F.3d 399 (11th Cir. 1995)

holding that explicit cautionary language in private placement memorandum rendered alleged misstatements immaterial and made them not actionable under "bespeaks caution" doctrine

Summary of this case from Bryant v. Avado Brands, Inc.

holding that explicit cautionary language in private placement memorandum rendered alleged misstatements immaterial and made them not actionable under "bespeaks caution" doctrine

Summary of this case from Collmer v. U.S. Liquids, Inc.

holding that explicit cautionary language in private placement memorandum rendered alleged misstatements immaterial and made them not actionable under the "bespeaks caution" doctrine

Summary of this case from Newby v. Enron Corp.

holding that explicit cautionary language in private placement memorandum rendered alleged misstatements immaterial and made them not actionable under the "bespeaks caution" doctrine

Summary of this case from McKNIGHT v. TXU CORP.

adopting the "bespeaks caution" doctrine as articulated in Donald J. Trump Casino Sec. Litig., 7 F.3d 357 (3rd Cir. 1993)

Summary of this case from In re Towne Services, Inc. Securities Litigation

adopting the bespeaks caution doctrine as outlined in In re Donald J. Trump Casino Securities Litig., 7 F.3d 357, (3d Cir. 1993), cert. denied, 510 U.S. 1178, 114 S.Ct. 1219, 127 L.Ed.2d 565, for claims under section 10(b) and Rule 10b-5

Summary of this case from In re Miller Ind., Inc. Securities Lit.

adopting the bespeaks caution doctrine as outlined in In re Donald J. Trump Casino Secs. Litig., 7 F.3d 357, (3d Cir. 1993) for claims under § 10(b) and Rule 10b-5

Summary of this case from In re Valujet, Inc. Securities Litigation

involving an offering document

Summary of this case from Sec. & Exch. Comm'n v. Lemelson

In Saltzberg v. TM Sterling/Austin Assocs., 45 F.3d 399 (11th Cir. 1995), the Eleventh Circuit adopted the "bespeaks caution" doctrine as explained by the Third Circuit in In re Trump.

Summary of this case from Upton v. McKerrow
Case details for

Saltzberg v. TM Sterling/Austin Associates, Ltd.

Case Details

Full title:DAVID SALTZBERG, ET AL., PLAINTIFFS-APPELLANTS, CROSS-APPELLEES, v. TM…

Court:United States Court of Appeals, Eleventh Circuit

Date published: Feb 16, 1995

Citations

45 F.3d 399 (11th Cir. 1995)

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