Cavi v. Evolving Systems Inc. et al

Filing 132

MEMORANDUM ORDER: The Motion for Partial Summary Judgment on the Falsity and Materiality Elements of Count XIII (D.I. 95 ). Signed by Judge Richard G. Andrews on 6/1/2018. (nms)

IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF DELAWARE

LARS CAVI,
Plaintiff,
v.

Civil Action No. 15-1211-RGA

EVOL YING SYSTEMS NC, INC.,
RATEINTEGRATION, INC., AND
THOMAS THEKKETHALA,
Defendants.

MEMORANDUM ORDER

Presently before the Court is Plaintiffs Motion for Partial Summary Judgment on the
Falsity and Materiality Elements of Count XIII. (D.I. 95).
Count XIII of Plaintiffs amended complaint alleges that Defendants violated the North
Carolina Securities Act, N.C. Gen. Stat. §§ 78A-1 et seq., 78A-8, 78A-56(a)(2), and the
Securities Exchange Act of 1934, Section lO(b) and Rule lOb-5 thereunder, by making various
misrepresentations and omissions in connection with the purchase and sale of Defendant
Rateintegration's common stock. (D.I. 24 iii! 391-454).
Plaintiff moves for summary judgment on the falsity and materiality elements 1 of that
count as to two written representations. (D.I. 96 at 4). The first is a January 10, 2009 email sent
to Plaintiff by Defendant Thekkethala. (Id.). The second is a "Compensation Model"
spreadsheet, which also appears to have been provided to Plaintiff by Thekkethala. (Id.).

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Falsity and materiality are elements of Plaintiffs claims brought pursuant to the federal securities laws,
see McCabe v. Ernst & Young, LLP, 494 F.3d 418, 424 (3d Cir. 2007), and the North Carolina Securities Act, see
Piazza v. Kirkbride, 785 S.E.2d 695, 709 (N.C. Ct. App. 2016).

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"The court shall grant summary judgment if the movant shows that there is no genuine
dispute as to any material fact and the movant is entitled to judgment as a matter of law." Fed.
R. Civ. P. 56(a).

Having reviewed the briefing and the evidence provided by the parties, I find the
evidence presented as to the relevant context to be sufficiently ambiguous such that I cannot
decide the elements of falsity and materiality as a matter of law. In other words, I am uncertain
that granting partial summary judgment to Plaintiff is warranted.
Accordingly, IT IS HEREBY ORDERED that Plaintiffs motion (D.I. 95) is DENIED.
Entered this

~
J_ day of Mey 2018.

w~,~
United States~istrict Judge

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