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DRONSEJKO v. THORNTON

Nos. 09-4222, 10-4074.

632 F.3d 658 (2011)

Gregory DRONSEJKO; Pedro Garcia; Anthony Mielec, Perla Sierra; Claudio Borghesan; Jerald F. Hassler; Andy Beichert; Jeffrey Bash; Tom Chen; Chris Davidson; Michael Speakman, Plaintiffs-Appellants, v. Grant THORNTON, Defendant-Appellee.

United States Court of Appeals, Tenth Circuit.

January 20, 2011.

Attorney(s) appearing for the Case

Ira M. Press (and Sarah G. Lopez of Kirby, McInerney, L.L.P.; Jonathan Gardner and Carol Villegas of Labaton, Sucharow, L.L.P., New York, NY, Jefferson W. Gross and Richard D. Burbidge of Burbidge, Mitchell & Gross, Salt Lake City, UT, on the brief), New York, NY, for Plaintiffs-Appellants.

Gary F. Bendinger (and Christopher B. Sullivan of Howrey, L.L.P., with him on the brief), Salt Lake City, UT, for Defendant-Appellee.

Before TACHA, KELLY, and MURPHY, Circuit Judges.

PAUL KELLY, JR., Circuit Judge.

This is a securities class action pursuant to Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5, brought on behalf of class members who purchased iMergent common stock between October 15, 2002 and October 7, 2005. Aplt.App. 47, 60-63, 105-107. The basis of the claim is improper revenue recognition that materially overstated revenues and earnings and, in August 2005, led to a restatement of iMergent's financial statements...

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