Opinion ID: 447943
Heading Depth: 3
Heading Rank: 3

Heading: Adequate Disclosures

Text: 33 The district court appears to have found that the defendants' public statements with regard to the Company's marketing prospects in light of the imminent dissolution of AT & T were sufficient to meet the defendants' obligations, stating that the Company's reports were replete with references to AT & T's obligation to file tariffs and to the amount of business Sykes had conducted with AT & T in the past. The court concluded that Sykes's dependence on AT & T was thus disclosed. This was based on an unduly narrow view of plaintiff's Complaint. Plaintiff did not allege simply that defendants failed to disclose Sykes's dependence on AT & T or AT & T's subjection to regulation; he alleged that defendants made positive predictions as to the Company's future marketing operations in light of the imminent AT & T breakup (that the breakup would be favorable to Sykes and create increasing opportunities for Sykes), when at best the future situation was unclear. The court's conclusion that such disclosures as were made were sufficient to dispel whatever aura of certainty might have been created by the representations actually made appears, once again, to be a judgment as to the materiality of the alleged misrepresentations and nondisclosures. While it may be that a jury would agree with that conclusion, we think it an inappropriate judgment to make as a matter of law. 34