The court of appeals affirmed a judgment of the district court in part, reversed in part and remanded. The court held that a summary judgment had to be reversed where a rational trier of fact could find that a CEO had misled investors by describing his company’s financial growth as “accelerated” without simultaneously disclosing certain unusual transactions.
The Securities and Exchange Commission (SEC) sued John Todd, Robert Manza and Jeffrey Weitzen, senior officers of Gateway Incorporated (now a subsidiary of Acer, Inc.), a manufacturer and seller of personal computers. In 2000, Weitzen was Gateway’s president and CEO, Todd was its chief financial officer, and Manza was its controller.
