In re Nuko Information Systems, Inc. Securities Litigation
Opinion
lead Opinion
Infante, J.
OPINION AND ORDER DENYING DEFENDANTS’ MOTION TO DISMISS SECOND AMENDED COMPLAINT
Currently before the court is Defendants’ Motion to Dismiss the Second Amended Complaint (“SAC”) under Rules 12(b)(6) and 9(b) of the Federal Rules of Civil Procedure. The underlying action is a securities fraud class action brought under the Securities Exchange Act of 1934. Defendants move to dismiss the SAC for Plaintiffs’ failure to satisfy the pleading requirements of the Private Securities Litigation Reform Act of 1995 (“PSLRA”), as interpreted by the Ninth Circuit in In re Silicon Graphics Inc. Securities Litigation, 183 F.3d 970 (9th Cir.), reh’g denied, 195 F.3d 521 (9th Cir.1999).
I. BACKGROUND
A. Facts 1
Nuko Information Systems, Inc. (“Nuko”) is a Delaware corporation with executive of *340 fices in San Jose. 2 Nuko designs, markets, and sells video networking products. At all relevant times, Defendant John H. Gorman was its Vice President of Finance, Chief Financial Officer, Secretary, and Treasurer. Defendant Pratap K. Kondamoori was its President, Chief Executive Officer, and Chairman of the Board. Gorman and Kondamoori each owned a significant number of shares of Nuko stocks.