Kaplan

William Kaplan appeals the district court’s grant of summary judgment to the defendants in his class action alleging securities violations against Medstone International, Inc., various Medstone officers and directors, and an underwriter (hereinafter collectively referred to as “Medstone,” or “the defendants,” unless individual identification is required). Georgiane Kramer appeals the dismissal as res judicata of her similar class action against the same defendants.

Kaplan alleged that the defendants made numerous material false and misleading statements and omitted material information in the company’s prospectus, in violation of § 11 of the Securities Act of 1933. He also alleged that the defendants made false and misleading statements, and omitted material information, from statements made after the prospectus on which the plaintiffs relied in purchasing shares of Medstone stock, in violation of § 10(b) of the Securities and Exchange Act of 1934. Medstone and Kaplan both moved for summary judgment. The district court granted Medstone’s motions, finding that the prospectus statements were not false, that Kaplan had not shown reliance on the statements made after the prospectus,…