IN RE CABLETRON SYSTEMS, INC.

No. 01-1965.

311 F.3d 11 (2002)

In re: CABLETRON SYSTEMS, INC., Charles Mesko, Steven Goldman, BGC Investment Club, Malcolm R. Braid, Linda Lee Braid, Jo Bridgeford, James E. Chesney, Steven M. Cross, Charles C. Cullers, Thomas D'Ambrosio, Lisa D'Ambrosio, Robert J. Datsko, Kathy O. Datsko, Bert M. Davis, William Deneen, Fred V. Gakstatter, Larry M. Giesen, Robert Glamb, Deborah Glamb, Donald F. Godwin, Natalie Greenberg, John Halicks, Patricia Halicks, Simon X. He, Intrepid Investors, Ashvin Kapadia, Irwin Kramer, Mark F. Kuligowski, Gary W. Kurtz, Suzanne Kurtz, Paul Lawson, Edmond E. LeBlanc, Terry Lenmark, Craig Lukemire, Bret J. May, David L. Mayes, Timothy M. McMahon, Walter C. Meyer, Edith L. Meyer, Ed Neubert, William Kent Nichols, Martin Palkovic, Richard W. Penoza, Fred Perlman, Roy Philemon, David Phillips, Josie Phillips, Gregory Pinto, Gregory Piro, William Carl Porter, Denis A. Pratt, Andrew Robinton, Tracy Robinton, Barbara Robinton, Ali Robinton, Michael R. Scharf, Romildo J. Scolari, Wolfgang U. Spendel, Lee Stein, Peter Swanson, James F. Sweeney, Titan Investors, John R. Tonsager, Caryl Traugott, Robert F. White Jr., Robert C. White, James W. Whitmer, John Robinton, James Wong, Bernard Yamner, Nancy Zorner, Patricia J. Zumpfe, Bernard Robinson, Marc Linsky, Mala Balasubramanian, Matthew J. Decker, Ron Grynkiewicz, Ron Knecht, Vincent Luongo, Richard Nadzieja, Thai Nguyen, Chani Pangali, Robert Rando, Russell Ruffino, Babette Spatz, Karen Borick, Richard Durr, James G. Pettus, Kenneth M. Williams, and Philip Adler, Plaintiffs, Appellants, George R. Bielski, Henry Brener, BYSG Capital, John Campbell, Frank Charamitaro, Ed Dunn, Leslie C. Hale, Charles Hammond, Carole Kops, Larry Morrison, Lou Ann Murphy, Muriel Robinson, Jim Spencer, Patricia Stack, Albert Shapiro, Peter Samek as Trustee of Robert and Joanne Samek Living Trust, and Nathan Schlessinger, Plaintiffs, v. Cabletron Systems, Inc., Robert Levine, Craig R. Benson, Paul R. Duncan, David J. Kirkpatrick, Donald F. McGuinness, Michael D. Myerow, And Christopher J. Oliver, Defendants, Appellees.

United States Court of Appeals, First Circuit.

Decided November 12, 2002.


Attorney(s) appearing for the Case

Sanford P. Dumain with whom William C. Fredericks, Bruce D. Bernstein, Milberg Weiss Bershad Hynes & Lerach LLP, Herbert E. Milstein, Mark S. Willis, Cohen, Milstein, Hausfeld & Toll, P.L.L.C., Jules Brody, Mark Levine, and Stull Stull & Brody were on briefs for appellants.

Harvey J. Wolkoff with whom Robert G. Jones, David C. Potter, Ropes & Gray, Wilbur A. Glahn III, and McLane, Graf, Raulerson & Middleton were on brief for appellees.

Before LYNCH, Circuit Judge, COFFIN and CYR, Senior Circuit Judges.


LYNCH, Circuit Judge.

This case requires us to apply the pleading standards for private securities fraud litigation under the Private Securities Litigation Reform Act of 1995 ("PSLRA"), 15 U.S.C. § 78u-4(b) (2000), and raises several issues of first impression for this court. The district court, acting under Fed.R.Civ.P. 12(b)(6), dismissed the complaint. We differ with the district court concerning certain tests to be applied in assessing securities fraud claims...

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