Akerman v. Oryx Communications, Inc.
United States Court of Appeals for the Second Circuit
810 F.2d 336 (1987)
Relevant factsFree
Oryx (defendant) mistakenly booked an April transaction in its March financials for its 1981 IPO, inflating its apparent revenue; after Oryx disclosed the error, its stock dropped from $4.00 to $3.25, but by the time shareholder Akerman (plaintiff) sued two weeks later, the price had already recovered to $3.50. The district court ruled for Akerman, awarding him the difference between the pre- and post-disclosure prices.
IssueFree
Whether a defendant in a securities action may reduce its liability by proving that a decline in the security's value resulted from a factor other than the financial misstatement.