Opinion ID: 500420
Heading Depth: 3
Heading Rank: 3

Heading: Mount Royal Trustees

Text: 78 Plaintiffs' claims against the trustees 17 are similar to their claims against the issuer defendants. The trustees met in December, 1980 to abandon the Mount Royal project and did not meet again until August, 1981, when Rice called a meeting to resurrect the project. In their submission of evidence in opposition to the motions for summary judgment, plaintiffs made the following claims against the trustees: (1) that, after less than one hour of consideration, the trustees rubber stamped the resurrection of the project as a $35,000,000 bond issue even though it had been cancelled seven months earlier because it was not feasible as a $19,000,000 project; and (2) the trustees did not keep themselves informed of subsequent developments, such as the lowering of the amount of the bond issue to $29,950,000. Plaintiff's Abstract of Evidence at 70, 71. 79 These charges, even if true, do not support a reasonable inference of scienter. At best, they allege negligence on the part of the trustees, who received no financial compensation for their work as trustees. Because no reasonable juror could find from this evidence that the trustees were part of any fraudulent scheme, we affirm the district court's grant of summary judgment as to these defendants.