Summary
holding that to be liable under Rules 10b-5 and (c) a defendant "must have engaged in conduct that had the principal purpose and effect of creating a false appearance of fact in furtherance of the scheme" and noting that, for example, "the invention of sham corporate entities to misrepresent the flow of income, may have a principal purpose of creating a false appearance" but that "[c]onduct that is consistent with the defendants' normal course of business would not typically be considered to have the purpose and effect of creating a misrepresentation."
Summary of this case from In re Edward D. Jones & Co.Opinion
No. 04-55665.
Filed March 26, 2008.
Peter E. Borkon, Cotchett Pitre McCarthy, Burlingame, CA.
Robert Hutchinson, Cotchett Pitre McCarthy, Beverly Hills, CA, Clifford H. Pearson, Wasserman, Comeden, Casselman Pearson LLP, Tarzana, CA, for Plaintiff.
Joseph W. Cotchett, Cotchett Pitre McCarthy, Burlingame, CA, Nancy L. Fineman, Cotchett Pitre San Francisco Airport Office Center, San Francisco, CA, for Plaintiff-Appellant.
Robert C. Vanderet, O'Melveny Myers, LLP, Howard M. Privette, Paul Hastings Janofsky Walker, LLP, Dean J. Kitchens, Gibson Dunn Cruthcher, LLP, John B. Quinn, Quinn Emanuel Urquhart Oliver Hedges, LLP, Jeffrey H. Dasteel, Skadden, Arps, Slate, Meagher Flom LLP, Michael C. Tu, Daniel J. Tyukody, Jr., Orrick Herrington Sutcliffe, LLP, Melissa M. Dulac, Kirkland Ellis, LLP, David C. Scheper, Overland Borenstein Scheper Kim, LLP, Los Angeles, CA, Robert C. Friese, Shartsis Friese, LLP, Nanci L. Clarence, Clarence Snell Dyer LLP, San Francisco, CA, Peter T. Barbur, Cravath Swaine Moore, LLP, Stephen P. Warren, Samuel Kadet, Skadden, Arps, Slate, Meagher Flom LLP, New York, NY, F. Whitten Peters, Washington, DC, Jeffrey Speiser, Edward S. Nathan, Stern Kilcullen, Roseland, NJ, Walter J. Robinson, III, Pillsbury Winthrop Shaw Pittman LLP, Palo Alto, CA, William A. Isaacson, Boies, Schiller Flexner, Roger C. Spaeder, Carl S. Kravitz, Zuckerman, Spaeder, Goldstein, Taylor Kolker, Everett Johnson, Belinda Lee, Latham Watkins, LLP, Washington, DC, Roy R. Newman, Atkinson, Andelson, Loya, Ruud Romo, Cerritos, CA, Paul D. Murphy, Murphy Rosen Cohen, LLP, Santa Monica, CA, J. Christian Word, Latham Watkins, Reston, VA, for Defendants-Appellees.
Eric A. Isaacson, Coughlin Stoia Geller Rudman Robbins, LLP, San Diego, CA, David H. Braff, Sullivan Cromwell, New York, NY, for Amicus Curiae.
On Remand from the United States Supreme Court. D.C. No. CV-01-11115-RSWL.
Before ROBERT R. BEEZER, THOMAS G. NELSON, and RONALD M. GOULD, Circuit Judges.
ORDER
Pursuant to the judgment of the United States Supreme Court issued on February 25, 2008 in Avis Budget Group v. California State Teachers Retirement System, ___ U.S.___, 128 S.Ct. 1119, 169 L.Ed.2d 945 (2008), we vacate our opinion at 452 F.3d 1040 (9th Cir. 2006), vacate the district court's decision, and remand for further proceedings which are consistent with the opinion of the Supreme Court.