Yourish

I

Norman and Kenneth Yourish (“Plaintiffs”) filed this class action on behalf of a class of investors who purchased California Amplifier, Inc. (“Cal Amp”) common stock between September 12, 1995, and August 8, 1996. Plaintiffs allege that Cal Amp and its top insiders 1 (collectively “Defendants”) made a series of false and misleading statements to securities analysts and the market to manipulate and inflate the price of Cal Amp common stock during the class period. The complaint asserted claims under § 10(b) and § 20(a) of the Securities and Exchange Act of 1934, see 15 U.S.C. §§ 78j(b) & 78t(a), as well as under Rule 10b-5, see 17 C.F.R. .§ 240.10-b5.

Defendants filed a motion to dismiss the complaint on several grounds. Counsel for Plaintiffs and Defendants appeared at the hearing on the motion on February 23, 1998. Due to heavy rains that day, however, the district court judge was prevented from traveling to the courthouse when her train was canceled. The district judge’s clerk informed the parties that Judge Mar *986 shall’s tentative ruling was to grant the motion and allow ten days leave to amend.

After discussing the matter with Defendants, Plaintiffs agreed to waive…