Broudo

Michael Broudo et al. (“Appellants”) appeal the district court’s dismissal with prejudice of the second amended complaint (“SAC”) under Federal Rule of Civil Procedure (“FRCP”) 12(b)(6). In re Dura Pharm., Inc. Sec. Litig., No. 99CV0151-L(NLS) (S.D.Cal. Nov. 11, 2001). Because 1) the SAC satisfied the loss causation element of a Section 10(b) violation of the Securities and Exchange Act of 1934 with respect to the Albuterol Spiros device; and 2) the district court abused its discretion in not permitting Appellants to amend the SAC to include additional allegations regarding Dura’s Ceclor CD sales, the district court’s judgment is reversed and remanded.

BACKGROUND

This securities fraud case is a class action on behalf of investors who purchased Dura Pharmaceutical securities between April 15,1997, and February 24,1998 (“the class period”). This appeal is drawn spe-eifically to alleged misleading and untrue statements made by Dura and its officials (collectively “Dura”) 1 about Dura’s Albu-terol Spiros delivery device for asthma medication 2 and Dura’s Ceclor CD antibiotic. During the class period, Dura issued several press releases 3 indicating satisfactory development and…