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http://nycourts.law.com/CourtDocumentViewer.asp?view=Document&docID=46465 Judge Conner PLAINTIFF ALLEGED that defendants are liable under ��11, 12(a)(2) and 15 of the Securities Act of 1933 in an action that arose after defendant telecommunications company had made an initial public offering (IPO) in 2000 as part of an effort to expand its fiberoptic network. Defendant filed a registration statement incorporating its prospectus. Plaintiff claimed that the prospectus contained actionable misstatements because it created “the false and misleading impression that strong demand existed for [defendant's] capacity, and that demand was growing.” The court granted defendants’ motions to dismiss for failure to state a claim, but granted plaintiff leave to replead all claims. The court found that plaintiff failed to plead facts showing that the registration statement contained an untrue statement of material fact or omitted to state a required material fact since plaintiff did not allege facts to indicate that the telecommunications company failed to adequately investigate its customers’ ability to pay.

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