Judge Pares Down Pegasus Securities Case

Law360, New York (September 22, 2009, 3:26 PM EDT) -- A federal judge has dealt a setback to a proposed securities class action alleging Pegasus Wireless Corp. was part of a pump-and-dump scheme that artificially inflated its stock prices, dismissing the remaining individual defendants in the case.

In three rulings Sept. 21, Judge Kenneth A. Marra of the U.S. District Court for the Southern District of Florida determined that the complaint by a proposed class of investors failed to state a claim or draw an inference of scienter against the company’s former CEO, an outside member...
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