Opinion ID: 751831
Heading Depth: 3
Heading Rank: 3

Heading: Optimistic Statements

Text: 79 The underwriters also contend that some of the alleged false statements are merely optimistic projections, and therefore not misleading. Robinson-Humphrey, however, made specific forecasts of earnings increases due to the Computerland acquisition, and after the 1994 first-quarter decline in price margins, wrote that Merisel was raising prices in response. The complaint alleges that Merisel was actually continuing to cut prices. 80 Lehman Brothers also made specific forecasts. After the first-quarter decline Lehman also stated that Merisel had begun to raise prices. These statements are not mere optimism. Nor were they all forecasts; both Lehman Brothers and Robinson-Humphrey made statements about current conditions and trends at Merisel. Although the complaint quotes other analysts who made similar positive statements about Merisel's current status and future prospects, this does not mean that the Lehman Brothers and Robinson-Humphrey analysts' statements are somehow automatically reasonable. All the analysts wrote optimistic reports based in part on information from Merisel; only Robinson-Humphrey and Lehman Brothers are alleged to have known better through their access to inside information. 81 Even the analysts' optimistic statements can be actionable if not genuinely and reasonably believed, or if the speaker is aware of undisclosed facts that tend seriously to undermine the statement's accuracy. In re Apple Computer Sec. Litig., 886 F.2d 1109, 1113 (9th Cir.1989). The complaint alleges that the analysts were aware of undisclosed facts that showed there was no reasonable basis for their forecasts, which they did not genuinely believe. 82 The allegations against the underwriter defendants also survive the motion to dismiss.