Opinion ID: 571326
Heading Depth: 4
Heading Rank: 2

Heading: The May 18 Report to Shareholders

Text: 50 The plaintiffs next point to a statement made in Convergent's May 18, 1983 First Quarter Report to Shareholders: Our growth in the [first] quarter [of 1983] was the result of increases in shipments to our large OEM customers. This statement purports to describe only the first quarter of 1983. The plaintiffs take no exception to the accuracy of its factual description. The plaintiffs instead contend the statement misled investors by implying that Convergent expected the upward first quarter trend to continue throughout the year. We reject this contention. Although in its annual Form 10-K filing a company must discuss factors that would cause reported financial information not to be necessarily indicative of future financial operating results, no such obligation exists in the quarterly report at issue here. See 17 C.F.R. § 229.303. 51