In City of Livonia Employees Retirement System v. Boeing Co, City sued Boeing on behalf of all persons who bought Boeing stock in a certain time period on the basis that the company was overly optimistic about the time schedule for the new 787 aircraft. When problems with the plane developed, the stock fell ten percent. Suit claimed that company executives made false statements about the plane, so committed securities fraud. The appeals court held that Boeing was:
a. liable for securities fraud because the reports about the plane were not sufficiently identified as a forward- looking statement
b. not liable for securities fraud because the Private Securities Litigation Reform Act requires that plaintiffsdemonstrate fraud in company statements, which did not happen
c. Not liable for securities fraud because there is no evidence Boeing knew of the problems in advance d. American Express was liable for all damages due to its overly optimistic statements
e. American Express was liable for securities fraud because it did not have a separate section of the report that identified it as a forward looking statement
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