On June 2nd, a federal district court denied motions to dismiss class action securities fraud claims. The Court held that the plaintiffs allege facts supporting a strong inference of scienter. Some events are so integral to a company that knowledge cannot be denied by senior executives. This scienter inference was strengthened by the existence of an SEC investigation and executive stock sales. The Court also applied the group pleading doctrine to find that a claim for primary liability had been stated against an individual executive who remained silent when alleged misstatements were made. Corporate officers may not stand idly by as investors and analysts are misled. Plumbers Union Local No. 12 Pension Fund v. Ambassador's Group.