Barclays initially disclosed statements such as "[g]roup-wide frameworks, policies[,] and standards enable Barclays to meet regulators' expectations relating to internal control and assurance" and "[Barclays] has operated a sound system of internal control that provides reasonable assurance of financial and operational controls and compliance with laws and regulations," but later disclosed that Barclays had not implemented a system for tracking or monitoring the issuance of securities from the shelves. The court held that the dueling assertions that (i) Barclays "operated a sound system of internal control" and (ii) Barclays had no system of internal control cannot at the same time be true. Therefore, the court held that Barclays' alleged statements regarding controls, prior to disclosing that no internal system of controls existed, were misleading. The court also found that such statements were made with scienter because the defendants acted in disregard of their failure to implement a control system.