Investor Falls Short In AOL Short-Swing Trade Appeal

Law360, New York (August 20, 2009, 1:32 PM EDT) -- A federal appeals court has upheld the dismissal of a derivative shareholder class action alleging that America Online LLC engaged in illegal short-swing trades with InfoSpace Inc. and its founder and former CEO Naveen Jain.

The U.S. Court of Appeals for the Ninth Circuit ruled Wednesday that Thomas R. Dreiling's claims that AOL created a beneficial ownership structure with Naveen and InfoSpace as part of a 1998 marketing agreement did not hold up under the “blunt and unforgiving nature” of Section 16(b) of the Securities Exchange...
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