Opinion ID: 3011060
Heading Depth: 2
Heading Rank: 3

Heading: The Positive Portrayals

Text: Next, we consider whether plaintiffs adequately pleaded a cause of action relating to the positive portrayals made by Advanta and its officers. To state a securities fraud claim under section 10(b) and rule 10b-5, a private plaintiff must plead the following elements: (1) that the defendant made a misrepresentation or omission of (2) a material (3) fact; (4) that the defendant acted with knowledge or recklessness and (5) that the plaintiff reasonably relied on the misrepresentation or omission and (6) consequently suffered damage. In re Westinghouse Sec. Litig., 90 F.3d 696, 710 (3d Cir. 1996). Plaintiffs' amended complaint identifies a number of representations alleged to satisfy these criteria. In addition to those set forth above (upon which the District Court focused its analysis), the complaint identifies the following statements: (1) An April 1996 letter to shareholders, signed by defendants Hart, Alter, Greenawalt and Rosoff, stated: Advanta's credit quality continues to be among the best in the industry. Our emphasis on gold cards -- and targeting of high quality customer prospects with great potential for profitability -- sets us apart from other credit card issuers.