Mun. Employees' Ret. Sys. of Mich. v. Pier 1 Imports, Inc.

JENNIFER WALKER ELROD, Circuit Judge:

"Fashion changes," says Coco Chanel, "but style endures." In this securities fraud case, a class of investors alleges, among other things, that Pier 1 Imports, Inc. is a "trend-based fashion retailer" whose inventory carried a significant markdown risk that the company's executives failed to disclose. Because we conclude that Pier 1 operates largely in the sturdier business of style and that the investors failed to adequately plead scienter, we AFFIRM.

I

Pier 1 Imports, Inc., is a Fort Worth-based retailer that sells home furnishings at more than 1,000…