United States Ninth Circuit

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Hildes v. Arthur Andersen LLP, 11-56592

The dismissal of a securities fraud action is reversed and remanded, where: 1) the district court erred by denying plaintiff leave to amend his complaint to add claims under section 11 of the Securities Act of 1933 against former outside directors of Peregrine Systems, Inc.; 2) the district court erred in concluding that amendment would be futile because the "negative causation" defense barred the proposed claims; and 3) plaintiff sufficiently alleged that material misstatements in a registration statement caused his losses even though prior to the filing of the registration statement he had entered into an agreement that his shares in Harbinger Corp. be voted in favor of a merger between Peregrine and Harbinger.

Appellate Information

  • Decided 08/19/2013
  • Published 08/19/2013




  • United States Ninth Circuit