Panther Partners Inc. v. Ikanos Communications, Inc., No. 11-63 (2d Cir. 2012)Annotate this Case
Plaintiff appealed an order of the district court denying leave to amend its complaint alleging violations of section 11, 12(a)(2), and 15 of the Securities Act of 1933, 15 U.S.C. 77k, 77l(a)(2), 77o. The proposed complaint alleged that defendant was required to disclose, and failed adequately to disclose, in connection with a March 2006 secondary offering of its securities, known defects in the company's semiconductor chips. The court held that the proposed complaint stated a claim because it plausibly alleged that the defects constituted a known trend or uncertainty that the company reasonably expected would have a material unfavorable impact on revenues. Accordingly, the court vacated the judgment and remanded with instructions to permit the filing of the complaint.