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analysts’ reports that “question[ed] TECO’s future earnings and dividend payments

prospects.” Id. at *3. The court held that these reports did “not identify, reveal or

correct any prior misstatement, omission or improper accounting practice by [TECO].”

Id. at *4. The court further noted that, even if the reports could be construed as being

“corrective,” the information contained in them did not “specifically relate to the issues

involved in the alleged fraudulent scheme.” Id. at *5.

Likewise, in In re Dell Inc., Sec. Litig., 591 F. Supp. 2d 877 (W.D. Tex. 2008), the

plaintiffs alleged that Dell and its senior executives made misrepresentations and

omissions as to the vitality of the company’s business model, its prospects for growth,

and the strength of its competitors. The court first rejected the plaintiffs’ contention that

drops in Dell’s stock price following several press releases announcing disappointing

earnings established loss causation because the “statements . . . fail[ed] to reveal the

falsity of any of Dell’s prior representations, and therefore do not qualify as a corrective

disclosure.” Id. at 909. The court also considered an August 17, 2006 press release

disclosing an informal SEC investigation of the company for potential accounting

irregularities. Id. at 909-10. In dismissing the complaint, the court held that, even under

a notice pleading standard, “the disclosure of an investigation, whether conducted

internally or by the SEC, absent a revelation of prior misrepresentations, [cannot]

constitute a corrective disclosure for the purposes of loss causation” because the mere

announcement of an investigation does “not disclose the existence of any wrongdoing.”

Id. at 910. (internal citations omitted).

Finally, in In re Maxim Integrated Products, Inc. Sec. Litig., 2009 WL 2136939

(N.D.Cal. Jul. 16, 2009) plaintiffs brought a securities fraud class action alleging that


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