FI L ED U.S. COURT OF APPEAL S EL EVENTHCI RCUI T DEC 13, 2010 J OHN L EY CL ERK [DO NOT PUBLISH] IN THE UN ITED STATES COURT OF APPEALS FOR THE ELE VENTH CIRCUIT

No. 1 0- 10 68 8

D. C. Dock etNos . 9: 07 -cv -8 10 38 -DTKH

2: 07 -cv -1 43 8- DTKH SHEET METAL W ORKERS LOCAL 28 PENSION FUND, Ind iv idua ll y

an d o n b eh al f of

all ot he rs si m il arl y si tu at ed , Pl ai nt iff , NEW MEXICO EDUCATIONAL RETIREMENT BOARD Pl ai nt iff -Ap pe ll an t, ve rs us OFFIC E DEPOT, INC., STEVE ODL AND, PATRICIA MCKAY, Defen da nt s- App el le es .

----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- BOND NICHOLS, in di vi du al ly andon be ha lf o f al l o th ers si m il arl y si tu at ed , Pl ai nt iff , ve rs us OFFIC E DEPOT, INC., STEVE ODL AND, PATRICI A MCKAY, Defen da nt s.App eal fro m th e Uni te d S ta te s Di st ric t Co urt fo r th e So uthe rnDis tri ctof F lo rid a (Dece m be r 13 , 20 10 ) Befo re DUBINA, Ch ie f Ju dg e, BLACK an d F AY, Circ ui t J ud ge s. PER CURI AM: The New Mex ic o Educ at io na l Re ti rem en t Bo ard(ERB) app eal s t he di sm is sa l o f th e Sec on d C on so li da te d Am en de d C om pl ai nt(th e SCAC ) ag ai ns t Offi ce Dep ot , Inc . (Offi ce Dep ot ), Offi ce Dep ot ’s form er CEO an d C ha irman St ev e Odl an d (Od la nd ), an d Off ic e Dep ot ’s form er CF O Patric iaMcKay (McKay) (co ll ect iv el y , Defen da nt s) . The ERB re pr es en ts form er Offi ce Dep otsh areh ol de rs (Pl ai nt iff s) who pu rch as edco m

m on st oc k o f Offi ce Dep otbe twee n Oct ob er 1 7, 20 06 , andFeb ru ary 25 , 20 08 . The SC AC al le ge s Def en dant s m ad e m at eri al ly fal se rep res en ta ti on s co nc ern in g Off ic e Dep ot ’s fin an ci al co nd it io n i n v io la ti on of Sect io n 1 0( b) of t he Secu rit ie s Ex ch an ge Act o f 19 34 , 15 U.S.C. § 7 8j(b ) an d R ul e 10 b- 5, 1 7 C .F.R. § 2 40 .10 b- 5. The d is tri ctco urt d is m is se d t he SCAC af te r 1

The district court also dismiss ed Plaintiffs’ claim that Odland and McKa y violated Section 1 20(a) of the Securities Ex chang e Act of 1934, 15 U.S.C. § 78t. Plaintiffs did n o t appea l the dismiss al of this claim, and there fore any claim they had is waived. See Gree nbriar, Ltd. v. City of Alabaster , 881 F.2d 1570, 1573 n.6 ( 11th Cir. 1989). 2Defen da nt s fi le d aFed eral Ru le of C iv il Pro cedur e 1 2( b) (6 ) m ot io n, co nc lu di ng

Pl ai nt iff s fa il edto all eg e a s tro ng in fere nc e o f sc ie nt er as requi redby the Pri va te Secu rit ie s Li ti ga ti onRefo rm Act o f 19 95 , 15 U.S.C. § 7 8u -4 (th e PSLRA). Thi s co urt re vi ews th e g ran t o f a m ot io n t o d is m is s fo r fai lu re t o s ta te a cl ai m un de r Fed . R. Civ . P. 12 (b )(6 ) de no vo . Fin. Sec. Ass ur an ce, In c. v. St ep he ns , Inc

. , 50 0 F .3d12 76 , 12 82 (11 th Cir . 20 07 ). Afte r rev ie win g t he reco rd , read in g t he pa rti es ’ br ie fs an d h av in g t he be ne fit of ora l ar gu m en t, we co nc lu de th e d is tri ctco urt co rrec tl y an al y zedPla in ti ffs ’ SCAC a ndpro pe rly fou ndth atsci en te r was no t p le d s uf fic ie nt ly to m eetth e PSLRA. Se e g en er al lyMiz za ro v. Home Dep ot

, Inc

. , 54 4 F .3d12 30 (11 th Cir

. 20 08 ). As i n Miz

za ro , Pla in ti ffs fai le d t o a ll eg e fac ts gi vi ng ris e to a st ro ng in fere nc e o f sc ie nt er. Fi rs t, the SCAC d oe s n otco nt ai n a ny factu al all eg at io ns di rect ly lin ki ng Odl an d o r McKa y to th e al le ge d fr au d. Se co nd , th e SCAC fai ls to

es tabl is h t ha t b ecau se of “ gl ari ng acco un ti ng irr eg ul ari ti es or o th er ‘red f la gs ,’ ” Odl an d o r McKa y

m us t h av e kno wn o f th e fraud

. Gar fi eld v . NDC Hea lth C

or p. , 46 6 F .3d12 55 , 12 66 (11 th Cir . 20 06 ). Fin al ly, th e SCAC do es no t ra is e a s tro ng in fere nc e o f co rp or at e sc ie nt er b ecau se itfai ls to all eg e fac ts sh owi ng th at

“so meb od yres po ns ib le forth e al le ge dl y m is le ad in g s ta te m en ts m us t h av e kno wn ab ou t the frau d.” Miz

za ro , 54 4 F .3d at12 54 . Plai nt iff s’ cla im s ar e b as eden ti rel y

3on sp ecu la ti on an d a ll eg at io ns fro m un na m edwit ne ss es . Accor di ng ly, we affi rm th e jud gm en t o f di sm is sa l. AFFIRMED.

4