Tenth Circuit Partially Reverses Novell Dismissal

The Salt Lake Tribune reports today that the U.S. Court of Appeals for the Tenth Circuit has partially reversed the earlier dismissal of a securities class action against Novell. The appellate court held that claims alleging that Novell and certain of its officers “created a fictional ‘in transit’ category and improperly recorded shipments to OEMs (or original equipment manufacturers, companies that incorporated Novell products into retail computers, or acted as resellers) as sales revenue” could proceed. The suit is based on conduct that allegedly occurred in 1996 and 1997.