Tech Company’s Alleged Misstatements Were Not Puffery, Shareholders Argue

(May 20, 2020, 9:01 AM EDT) -- NEW YORK — A federal district court erred in ruling that misrepresentations allegedly made by a technology company and certain of its chief executives relating to a portal contract the company entered into with AT&T Corp. were either nonactionable puffery or forward-looking statements and protected by the safe harbor provision of the Private Securities Litigation Reform Act (PSLRA) because shareholders sufficiently pleaded “particularized facts” satisfying the requirements set forth by the U.S. Supreme Court precedent, the shareholders argue in a March 20 appellant brief in the Second Circuit U.S. Court of Appeals (Chanoch Shreiber, et al. v. Synacor Inc., et al., No. 19-4232, 2nd Cir.)....

Related Sections