Campbell v. Transgenomic, Inc.

A shareholder of Transgenomic filed a class action against former shareholders, alleging materially misleading statements and omissions in the proxy statement. The Eighth Circuit reversed the district court's ruling that any omissions or misstatements in the proxy statement were not materially misleading, and held that the district court improperly resolved the materiality of the omission as a matter of law. The court also held that issues regarding whether a revenue table was misleading were also questions for the trier of fact. Finally, plaintiff's section 20(a) of the Securities Exchange Act allegation was sufficiently pled. Accordingly, the court remanded for further proceedings. View "Campbell v. Transgenomic, Inc." on Justia Law