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STRANSKY v. CUMMINS ENGINE CO., INC.

No. 94-1964.

51 F.3d 1329 (1995)

Alan J. STRANSKY, Plaintiff-Appellant, v. CUMMINS ENGINE COMPANY, INC., Henry B. Schacht, James A. Henderson, J. Irwin Miller, William I. Miller, George W. Newlin, William D. Schwab, Harold Brown, Robert J. Darnall, Hanna H. Gray, Henry L. Hillman, Paul L. Miller, Donald S. Perkins, William D. Ruckelshaus, and Franklin A. Thomas, Defendants-Appellees.

United States Court of Appeals, Seventh Circuit.

Decided April 4, 1995.

As Amended April 7, 1995.

Attorney(s) appearing for the Case

Richard N. Bell, Irwin B. Levin, David J. Cutshaw (argued), Cohen & Malad, Indianapolis, IN, Gene Mesh, Robert Michael Phebus, Mesh & Associates, Cincinnati, OH, for Alan J. Stransky.

Francis P. Barron, Cravath, Swaine & Moore, New York City, Robert K. Stanley (argued), Kevin M. Toner, Michael R. Maine, Baker & Daniels, Indianapolis, IN, for Cummins Engine Co., Inc., Henry B. Schacht, James A. Henderson, Franklin A. Thomas, George W. Newlin, William D. Schwab, Harold Brown, Robert J. Darnall, Hanna H. Gray, Henry L. Hillman, Jr., Paul L. Miller, Donald S. Perkins and William D. Ruckelshaus.

David C. Campbell, Bingham, Summers, Welsh & Spilman, Indianapolis, IN, for William I. Miller and Irwin J. Miller.

Before BAUER, KANNE, and ROVNER, Circuit Judges.

KANNE, Circuit Judge.

The predicate for this case is a familiar one: a company makes optimistic predictions about future performance, the predictions turn out to be less than prophetic, and shareholders cry foul, or more specifically, fraud. Alan Stransky and Raphael Warkel filed a class action suit against Cummins Engine Company, Inc. (Cummins), alleging securities fraud. The district court dismissed with prejudice, pursuant to Federal Rule of Civil Procedure (FRCP...

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