Indiana Public Retirement System v. SAIC, Inc.

SAIC (defendant), a government contractor, learned in December 2010 that its Deputy Program Manager Denault was under criminal investigation for a kickback scheme tied to a New York City timekeeping contract, and by that same month the city and state had already rejected over $150 million in pending SAIC contracts specifically due to concerns about Denault's conduct; SAIC hired an outside auditor whose March 9, 2011 report detailed the fraud, yet SAIC's March 25, 2011 Form 10-K filing made no mention of the scheme, and it was not until June 2, 2011, well after Denault and others were criminally charged, that SAIC finally disclosed the fraud in a Form 8-K. The Indiana Public Retirement System (IPRS) (plaintiff) sued for securities fraud, the district court dismissed the complaint and denied leave to amend, and IPRS appealed.