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IN RE SYNTEX CORP. SECURITIES LITIGATION

No. 94-16156.

95 F.3d 922 (1996)

In re SYNTEX CORP. SECURITIES LITIGATION. Arthur M. ROSENBAUM; Richard Gorosh, On Behalf of themselves and all others Similarly Situated; Kenneth Wynne; Judy Wynne; Robert Younger; Jerrald Schaffer; Joseph Cocola; Rita Cocola; Robert K. Greenfield; Amy Tresti; Alan R. Tresti; Steven J. Gutter; Carol Morris; Nicholas J. Donohue; G. King Perry; Henry Cole; Bori Berkow and Eric Rose, Plaintiffs-Appellants, v. SYNTEX CORPORATION; Paul E. Freiman; James N. Wilson; John Fried; Marvyn Carton; Allen & Company Incorporated and Thomas Gutshall, Defendants-Appellees.

United States Court of Appeals, Ninth Circuit.

Decided September 13, 1996.

Attorney(s) appearing for the Case

Jan M. Adler, William Lerach, Milberg, Weiss, Bershad, Hynes & Lerach, San Diego, California, for plaintiffs-appellants.

Douglas M. Schwab, Heller, Ehrman, White & McAuliffe, San Francisco, California, for defendants-appellees.

Before: NORRIS, BEEZER, and TROTT, Circuit Judges.

TROTT, Circuit Judge:

OVERVIEW

Plaintiffs, purchasers of Syntex Corporation's common stock, appeal from the district court's order dismissing their securities class action suit alleging "fraud on the market." In their Second Amended Complaint, Plaintiffs allege that Syntex and several of its directors and officers violated sections 10(b) and 20(a) of the Securities Exchange Act of 1934 when they issued false statements about the company's financial outlook...

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