Nursing Home Pension Fund, Local 144 v. Oracle Corp.

A number of purchasers of Oracle Corporation stock (collectively referred to as “Plaintiffs”) appeal the District Court’s dismissal under Rule 12(b)(6) of their revised second amended complaint (“the Complaint”) against Oracle Corporation and three of its top executive officers (collectively referred to as “Oracle” or “Defendants”). Plaintiffs’ Complaint alleged that Defendants violated section 10(b) of the Securities Exchange Act of 1934 (“1934 Act”), 15 U.S.C. § 78j(b), and Rule 10b-5, promulgated thereunder. Plaintiffs further alleged that Oracle is liable under section 20(a) of the 1934 Act, 15 U.S.C. § 78t(a).

On appeal, Plaintiffs contend that the District Court erred in dismissing their Complaint because the Complaint set forth allegations that raised a strong inference of scienter, as required by the Private Securities Litigation Reform Act (“PSLRA”) and Federal Rule of Civil Procedure 9(b). Plaintiffs also contend that the District Court erred in ruling that certain statements contained in analyst reports were not actionable.

BACKGROUND

Oracle designs and markets computer software that enables businesses to manage information. It is the second-largest software company…