X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

The full case caption appears at the end of this opinion.

This appeal concerns a securities fraud claim against a seller of computer software for misrepresenting its income by failing to expense royalty advances after itbecame clear that the capitalized value of these advances was significantly overstated. Joel Rothman, representing a plaintiff class, appeals from the December 6,1999, judgment of the District Court of the Southern District of New York (David Edelstein, Judge), dismissing with prejudice plaintiffs’ claims againstDefendant-Appellees GT Interactive Software Corp. (“GT”) and its officers, and Arthur Andersen LLP (“Anderson”). We conclude that the complaint meets thepleading requirements for a securities fraud action against GT and its officers. We also conclude that the District Court properly dismissed the claim against Andersenfor failure to sufficiently plead scienter. We therefore affirm in part, reverse in part, and remand.

 
Reprints & Licensing
Mentioned in a Law.com story?

License our industry-leading legal content to extend your thought leadership and build your brand.

More From ALM

Premium Subscription

With this subscription you will receive unlimited access to high quality, online, on-demand premium content from well-respected faculty in the legal industry. This is perfect for attorneys licensed in multiple jurisdictions or for attorneys that have fulfilled their CLE requirement but need to access resourceful information for their practice areas.
View Now

Team Accounts

Our Team Account subscription service is for legal teams of four or more attorneys. Each attorney is granted unlimited access to high quality, on-demand premium content from well-respected faculty in the legal industry along with administrative access to easily manage CLE for the entire team.
View Now

Bundle Subscriptions

Gain access to some of the most knowledgeable and experienced attorneys with our 2 bundle options! Our Compliance bundles are curated by CLE Counselors and include current legal topics and challenges within the industry. Our second option allows you to build your bundle and strategically select the content that pertains to your needs. Both options are priced the same.
View Now

The Asia Legal Awards (ASLA) 2023

March 30, 2023
Singapore

Where the region's top lawyers, law firms and in-house teams will gather to celebrate their most stellar achievements of the year.


Learn More

GlobeSt Net Lease Spring 2023

April 03, 2023 - April 04, 2023
New York

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.


Learn More

Consulting Rising Stars of the Profession 2023

April 20, 2023
Chicago, IL

Consulting magazine is proud to recognize this unique group of movers & shakers at our annual Rising Stars of Profession awards.


Learn More

LITIGATION ATTORNEY - ATLANTA, GEORGIA- ENTRY LEVEL


0-5 year associate attorney needed for a civil litigation firm in the Buckheadarea. Great opportunity for advancement. Salary will be commen...


Apply Now ›

Litigation Associate (Hybrid Schedule)


Duane Morris LLP has an opening for Litigation Associate with 2-3 years of experience to join its Trial Practice Group in Houston. The candi...


Apply Now ›

Corporate Associate (Hybrid Schedule)


Duane Morris LLP has an opening in its Houston office for a corporate associate to join its growing practice. The ideal candidate will hav...


Apply Now ›

AARONSON RAPPAPORT FEINSTEIN & DEUTSCH, LLP

03/27/2023
NYLJ Web

Aaronson Rappaport Feinstein & Deutsch, LLP mourns the loss of cofounder and original Managing Partner, Mark B. Feinstein.


View Announcement ›

LAWYERS OF DISTINCTION

03/24/2023
NLJ Web

Lawyers of Distinction would like to announce...


View Announcement ›

SNYDER SARNO D'ANIELLO MACERI & DACOSTA

03/13/2023
NJLJ Web

Snyder Sarno D'Aniello Maceri & daCosta would like to announce that...


View Announcement ›