United States Sixth Circuit

In a securities laws suit brought by purchasers of bonds registered by GMAC in 2003 against GMAC and its control persons alleging that GMAC had breached its disclosure obligations and made material misstatements in its registration statements and prospectuses for multiple offerings of bonds, dismissal of the suit is affirmed where: 1) the offering materials did not have material omissions because (a) the applicable regulation only imposes a duty to make forward-looking projections regarding known information, and plaintiffs pleaded only that the information was "knowable", and (b) GMAC's affirmative statements were not rendered misleading by the absence of the information described by plaintiffs; and 2) the offering materials for the offering in which plaintiffs' purchased did not include material misstatements, as the affirmative statements made by GMAC were in fact true.

Appellate Information

• Decided 12/05/2008
• Published 12/05/2008

Judges

• Before:  KENNEDY, MARTIN, COLE, Circuit Judges.

Court

• United States Sixth Circuit

Counsel

• For Appellees:
  
• ARGUED:  Jacob A. Goldberg, Faruqi & Faruqi, Huntington Valley, Pennsylvania, for Appellants.  Robert J. Kopecky, Kirkland & Ellis, Chicago, Illinois, for Appellees.   ON BRIEF:  Jacob A. Goldberg, Faruqi & Faruqi, Huntington Valley, Pennsylvania, Jamie R. Mogil, Faruqi & Faruqi, New York, New York, Stephen F. Wasinger, Royal Oak, Michigan, for Appellants.  Robert J. Kopecky, Timothy A. Duffy, Kirkland & Ellis, Chicago, Illinois, Dennis M. Barnes, Barris, Sott, Denn & Driker, Detroit, Michigan, for Appellees.