Today the Third Circuit sent part of a securities fraud case against Avaya Inc. back to the district court.
The "central theory is that investors and analysts viewed the key to Avaya’s success to be its ability to increase sales revenues without cutting prices." The panel held that the complaint alleged enough details about Avaya's "pricing pressure" statements to survive a motion to dismiss under the strict standards of the Private Securities Litigation Reform Act of 1995. Institutional Investors Group v. Avaya, Inc., No. 06-4595, slip op. at 3 (3d Cir. Apr. 30, 2009).
The court affirmed the grant of the motion to dismiss in part. The complaint didn't persuade Their Honors that allegations regarding certain "forward-looking statements" met PSLRA muster.