2nd Circ. Upholds Dismissal Of Hearst Short-Sale Suit

Law360, New York (December 11, 2009, 5:02 PM EST) -- A federal appeals court has affirmed the dismissal of a derivative shareholder suit seeking to recover short-swing profits Hearst Corp. earned in 2007 from dealing in the securities of Local.com Corp.

The U.S. Court of Appeals for the Second Circuit on Wednesday upheld a lower court decision finding that Hearst was not an insider at the time of the transaction, clearing the company of liability under Section 16(b) of the Securities Exchange Act.

The lawsuit, filed in 2007, hinged on whether Hearst's ownership in Local.com had...
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