United States Ninth Circuit

In this consolidated class action, plaintiffs allege that defendants made false and misleading statements regarding defendant Apollo's enrollment and revenue growth, financial condition, organizational values, and business focus in violation of Securities and Exchange Act section 10(b) and SEC Rule 10b-5. Dismissal of plaintiffs' complaint is affirmed, where: 1) the material misrepresentations that plaintiffs allege are not objectively false misstatements but are examples of lawful "business puffing"; 2) count II contains largely conclusory allegations that Apollo improperly recorded student revenue; 3) the allegations that defendants are guilty of insider trading fail to state a claim because the alleged non-public information to which the defendants had access is the same information at issue in the counts enumerated in the Amended Complaint; and 4) plaintiffs' control person claim relies on the faulty allegations made in the other counts.

Appellate Information

• Decided 12/16/2014
• Published 12/16/2014

Judges

• Smith

Court

• United States Ninth Circuit

Counsel