compensation nor any statements that are corrected by the
alleged corrective disclosure. The $10.48 million in reimbursement expenses were at all times reflected in MDC’s financial
statements in the years in which they had been paid to Mr. Nadal.
The issue raised by the SEC was their characterization as proper
expenses for which Mr. Nadal could claim reimbursement. Mr.
Nadel’s extraordinarily remunerative salary was not misrepresented. The amount of his expense claims was not misrepresented. What was learned as a result of the internal investigation was
that some of his expense claims were not properly expensed to the
company. Mr. Nadal repaid those expenses.
 The October 29, 2014 statement does not address executive compensation, except insofar as it reported MDC’s total
stock-based compensation, which report would not have been
affected by the alleged misrepresentation. The November 6, 2014
quarterly report did not address executive compensation, and the
March 2, 2015 annual report addressed compensation expenses
only insofar as it included the Company’s audited annual financial statements for fiscal year 2014, which statements have never
been withdrawn or restated.
 Further, the expenses for which Mr. Nadal was reimbursed were not material. MDC indicated in the April 27, 2015
statement that the company did not expect there would be any
impact to its previously issued financial statements as a result of
its conclusion that certain amounts had been inappropriately
reimbursed to Mr. Nadal and no restatement of the financial statements has ever been made. The SEC did not require a restatement
when it concluded its investigation into Mr. Nadal’s perquisites
and expense reimbursements and when it entered into a settlement with MDC.
 In the case at bar, having considered all the evidence and
having regard to the limitations of the motions process, Mr. Paniccia’s case based on misrepresentations with respect to Mr. Nadal’s
compensation is so weak, that it has no reasonable possibility of
6. The segments misrepresentation
 The allegations relating to segment reporting can be
addressed quickly. These issue of the segments did not form part
of the SEC investigation and was raised by the SEC for the first
time after the end of the statutory leave period. The alleged segment misrepresentation issue arose after MDC’s April 27, 2015
statement, which Mr. Paniccia regards as a partial corrective
disclosure, and Mr. Paniccia has not pleaded any public correction
with respect to the alleged segments misrepresentation.