In City of Livonia Employees Retirement System v. Boeing Co, City sued Boeing on behalf of all persons who bought Boeing stock in a certain time period on the basis that the company was overly optimistic about the time schedule for the new 787 aircraft. When problems with the plane developed, the stock fell ten percent. Suit claimed that company executives made false statements about the plane,
so committed securities fraud. The appeals court held that Boeing was:
a. liable for securities fraud because the reports about the plane were not sufficiently identified as a forward- looking statement
b. liable for securities fraud because the Private Securities Litigation Reform Act requires that plaintiffs"demonstrate fraud" in company statements, which was done
c. was liable for securities fraud because it did not have a separate section in its report that identified it as a forward looking statement
d. was liable for all damages due to "actual knowledge" of overly optimistic statements
e. none of the other choices are correct
e
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