In re Burlington Coat Factory Securities Litigation
United States Court of Appeals for the Third Circuit
114 F.3d 1410 (1997)
Relevant factsFree
Burlington Coat Factory (defendant) announced in September 1994 that its fiscal-year earnings would fall well below its earlier voluntary forecast, causing its stock to drop more than 30% almost immediately. Shareholders (plaintiffs) sued, claiming BCF should have updated investors on its deteriorating financial condition before the announcement. The district court ruled for BCF, and the shareholders appealed.
IssueFree
Whether a voluntary disclosure of an ordinary earnings forecast creates a duty to update the forecast.