Booth v. Verity, Inc.

MEMORANDUM OPINION

HEYBURN, District Judge.

This case is brought under the Kentucky Blue Sky laws. Plaintiffs are two individual citizens of Kentucky who at one time owned stock or stock options in Verity, Inc. (“Verity”), one of the Defendants. The other defendants are the eleven individual directors 1 of Verity (“Defendant Directors”). Plaintiffs assert that Defendants’ optimistic statements to market analysts, combined with their failure to warn investors that revenues would fall short of analysts’ projections, fraudulently induced Plaintiffs to purchase Verity securities at inflated prices.

A…