Novell merged with WordPerfect by issuing Novell stock in exchange for WordPerfect stock. After the merge, Novell's

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Novell merged with WordPerfect by issuing Novell stock in exchange for WordPerfect stock. After the merge, Novell's stock fell seven percent. Grossman sued in a class-action suit alleging false and misleading statements and omissions from Novell, in the filing with the SEC related to the merger, that caused the stock price to be artificially inflated before the fall. Grossman cited statements from the company that the merger was "perhaps the smoothest of mergers in recent history" and that WordPerfect was "gaining market share.from less than 20 percent in 1992 to more than 40 percent today [1994]," and that the merger created a "compelling set of opportunities." Did the case have merit? [Grossman v. Novell, 120 F.3d 1112, 10th Cir. (1997)]

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The Legal Environment of Business

ISBN: 978-0538473996

11th Edition

Authors: Roger E Meiners, Al H. Ringleb, Frances L. Edwards

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