Opinion ID: 6986345
Heading Depth: 2
Heading Rank: 3

Heading: Allegation Three: MISREPRESENTATION Of Jorban’s Baokground

Text: The second amended complaint further alleges that Appellees violated Section 14(a) when they falsely held out Jordan as a director of Keithley Instruments, Inc. (“Keithley”). 8 However, the complaint does not suggest that Appellees’ statements about Jordan and Keithley were material misrepresentations. There are, in other words, no facts to support the inference that it was substantially likely that a reasonable CMD shareholder would have considered the nature of Jordan’s relationship with Keithley important in deciding how to vote. Since there can be no Section 14(a) liability without materiality, this allegation is defective. See TSC Industries, 426 U.S. at 449, 96 S.Ct. 2126; Stahl, 967 F.2d at 337.