Berry
Berry v. Valence Technology, Inc.
Opinion
Lead Opinion
Fletcher, J.
Plaintiffs, a class of persons who purchased stock in Valence Technology, Inc. (Valence) within a specified 27-month period, sued Valence and several of its officers for securities fraud in violation of section 10(b) of the Securities and Exchange Act of 1934. The district court granted Va *701 lence’s motion for summary judgment, holding that Plaintiffs’ claims were barred by the statute of limitations because Plaintiffs were on “inquiry notice” of the possibility of fraud more than one year before they filed suit. On appeal, Plaintiffs argue that “actual discovery,” not inquiry notice, triggers the statute of limitations for claims under section 10(b). Alternatively, Plaintiffs contend the district court erred in holding that an article in the March, 1993 issue of Forbes magazine sufficed to put them on inquiry notice. Plaintiffs also appeal from the district court’s earlier dismissal under Rule 12(b)(6) of claims against Valence’s former CEO Lev Dawson for alleged fraud occurring after Dawson’s resignation as CEO. We have jurisdiction pursuant to 28 U.S.C. § 1291 . We reverse the district court’s grant of summary judgment on the statute of limitations issue, and affirm its…