Sign In
Events
Newsletters
Search

Close

Close Search

Cancel

SEARCH
MY LAW.COMNEW

Rothman v. Gregor

Shareholders stated claim for securities fraud against officers and directors of software company with allegations that company misrepresented its income by failing to expense royalty advances after it was clear that capitalized value of advances was misleading.

X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

The full case caption appears at the end of this opinion.

This appeal concerns a securities fraud claim against a seller of computer software for misrepresenting its income by failing to expense royalty advances after itbecame clear that the capitalized value of these advances was significantly overstated. Joel Rothman, representing a plaintiff class, appeals from the December 6,1999, judgment of the District Court of the Southern District of New York (David Edelstein, Judge), dismissing with prejudice plaintiffs’ claims againstDefendant-Appellees GT Interactive Software Corp. (“GT”) and its officers, and Arthur Andersen LLP (“Anderson”). We conclude that the complaint meets thepleading requirements for a securities fraud action against GT and its officers. We also conclude that the District Court properly dismissed the claim against Andersenfor failure to sufficiently plead scienter. We therefore affirm in part, reverse in part, and remand.

Trending Stories

 
Reprints & Licensing
Mentioned in a Law.com story?

License our industry-leading legal content to extend your thought leadership and build your brand.

LEARN MORE

More From ALM

Premium Subscription
With this subscription you will receive unlimited access to high quality, online, on-demand premium content from well-respected faculty in the legal industry. This is perfect for attorneys licensed in multiple jurisdictions or for attorneys that have fulfilled their CLE requirement but need to access resourceful information for their practice areas.
View Now
Team Accounts
Our Team Account subscription service is for legal teams of four or more attorneys. Each attorney is granted unlimited access to high quality, on-demand premium content from well-respected faculty in the legal industry along with administrative access to easily manage CLE for the entire team.
View Now
Bundle Subscriptions
Gain access to some of the most knowledgeable and experienced attorneys with our 2 bundle options! Our Compliance bundles are curated by CLE Counselors and include current legal topics and challenges within the industry. Our second option allows you to build your bundle and strategically select the content that pertains to your needs. Both options are priced the same.
View Now
Go to CLE Center
General Counsel Conference Southwest 2024
September 18, 2024 - September 19, 2024
Dallas, TX

Join General Counsel and Senior Legal Leaders at the Premier Forum Designed For and by General Counsel from Fortune 1000 Companies


Learn More
Women, Influence & Power in Law US Awards 2024
September 24, 2024
Chicago, IL

Women, Influence & Power in Law Awards honors women lawyers who have made a remarkable difference in the legal profession.


Learn More
Women, Influence & Power in Law (WIPL) 2024
September 23, 2024 - September 25, 2024
Chicago, IL

WIPL is the original global forum facilitating women-to-women exchange on leadership and legal issues.


Learn More
Go to Events Go to Webcasts
PUBLIC FINANCE ATTORNEY

Public Finance Attorney wanted for established New Jersey bond counsel firm located in Cranford, New Jersey. New Jersey municipal and schoo...


Apply Now ›
TAX ATTORNEY - NEW YORK

Experienced tax attorney to assist growing corporate practice. Candidate should have a minimum of 7 years' experience in corporate and par...


Apply Now ›
(ASSOCIATE) PROFESSOR OF PRACTICE OFFICE FOR ACADEMIC SKILLS INSTRUCTION AND SUPPORT

University of California College of the Law, San Francisco ( UC Law SF, formerly, UC Hastings ), located in downtown San Francisco, seeks...


Apply Now ›
Go to Lawjobs