9th Cir.;
15-55173

The court of appeals reversed a district court judgment. The court held that the non-forward-looking portions of “mixed statements,” which also included forward-looking statements about projected growth and revenue, were not protected by the safe harbor provision of the Private Securities Litigation Reform Act (PSLRA).

Investors filed a putative class action against Quality Systems, Inc., alleging that QSI and several of its officers made false or misleading statements about the current and past state of QSI's sales “pipeline,” and used those statements to support public guidance to investors about QSI's projected growth and revenue. Plaintiffs alleged the officers had real-time sales information showing a decline in sales and knew that their public statements denying any decline were false or misleading.