District Court Grants Defendants' Motion for Summary Judgment in WAXS Class Action

In March 2004, the United States District Court for the Northern District of Georgia granted the Defendants' motion for summary judgment in what was left of twenty-three class actions against World Access (WAXS). The Court found that WAXS's statements concerning a switch designed for developing markets were not false and misleading. The Court went on to conclude that, in any case, the statements were not material based on an event study performed by Dr. McCann. The Court said that when allegedly false and misleading statements do not cause a statistically significant price increase during the class period, Plaintiffs can not demonstrate materiality of the alleged misrepresentations by looking at an allegedly curative disclosure if those disclosures contained a lot of additional negative information.

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Craig J. McCann