Opinion ID: 571326
Heading Depth: 5
Heading Rank: 2

Heading: Burroughs' Decreased Orders

Text: 47 The plaintiffs also contend the statements in the March Prospectus misled the public because Convergent did not disclose the alleged decrease in Burroughs' orders from 30,000 units to 7,500 units. In making this argument, the plaintiffs do not contend Convergent was obligated to disclose the 30,000-unit figure or the existence of negotiations with Burroughs or the result of those negotiations. They argue instead that even though the 30,000 figure was not disclosed, when Burroughs decided to decrease this figure to 17,500, this should have been disclosed. Of course, if there was no decrease in committed orders, the plaintiffs' argument fails. 48 There was no such decrease. Undisputed evidence in the record shows that in the computer industry generally, an agreement to purchase has far different consequences than an actual purchase order. Deposition of Allen Michels at 75-76. While the former represents a mere forecast of anticipated product demand, the latter is an actual obligation to buy. Id. Burroughs and Convergent never incorporated into their master Agreement the 30,000-unit figure, and it never became part of Burroughs' contractual obligation. The July 29 letter agreement, which contained the 30,000-unit figure, specifically provided that its terms remained subject to Burroughs' internal approval cycle, and that internal approval was never obtained. Finally, the defendants demonstrated that neither Burroughs nor Convergent viewed the 30,000-unit figure as binding on Burroughs. The plaintiffs, other than pointing to the July 29 letter, offer no evidence disputing this characterization. The plaintiffs' argument, therefore, fails because it mischaracterizes the 17,500 purchase commitment as a decrease in existing orders. The 30,000 figure never was a commitment to buy. The 17,500 figure, which was such a commitment, amounted to nearly a 100% increase over Burroughs' previous purchase commitment. 49