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IN RE DAOU SYSTEMS, INC.

Nos. 02-56989, 02-57018.

411 F.3d 1006 (2005)

In re DAOU SYSTEMS, INC., Securities Litigation, Greg Sparling; Eugene Krabbenhoft; Patrick De Kruyff, Esq.; Robert Zaretsky; Rod Ford; Thomas V. Hagman; Richard W. Walsh; Richard Toribio; Paul Rabin, Plaintiffs-Appellants, v. Georges Daou; Daniel Daou; Fred McGee; Robert McNeill; John Moragne; Daou Systems, Inc., Defendants-Appellees. In re Daou Systems, Inc., Securities Litigation, Greg Sparling; Eugene Krabbenhoft; Patrick De Kruyff, Esq.; Robert Zaretsky; Rod Ford; Thomas V. Hagman; Richard W. Walsh; Richar Toribio; Paul Rabin, Plaintiffs-Appellees, v. Georges Daou; Daniel Daou; Fred McGee; Robert McNeill; John Moragne, Defendants, and Daou Systems, Inc., Defendant-Appellant.

United States Court of Appeals, Ninth Circuit.

Filed February 2, 2005.

Amended June 21, 2005.

Attorney(s) appearing for the Case

Eric A. Isaacson, San Diego, CA, for the plaintiffs-appellants-appellees.

Michael P. McCloskey, San Diego, CA, for the defendants-appellees-appellants.

Before BETTY B. FLETCHER, HARRY PREGERSON, and MELVIN BRUNETTI, Circuit Judges.

ORDER AND AMENDED OPINION

ORDER

The attached amended opinion is substituted for the original opinion filed on February 2, 2005, slip op. page 1385 and appearing at 397 F.3d 704 (9th Cir.2005). With these amendments, Daou's petition for panel rehearing is denied and plaintiffs' "Motion to Amend Opinion to Conform with Controlling Precedent" is moot.

OPINION

BRUNETTI, Circuit Judge.

Plaintiffs,...

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