E-Trade Loses Bid To Dodge Securities Class Action

Law360, New York (May 12, 2010, 12:55 PM EDT) -- E-Trade Financial Corp. and its top executives have lost a bid to dismiss a securities class action brought by investors who say the company misrepresented its financial condition during the mortgage meltdown in 2007.

Investors adequately alleged securities violations concerning the company's claims about its mortgage business, and the case may proceed, the U.S. District Court for the Southern District of New York ruled Monday.

E-Trade was hit with a slew of suits in 2007 after it announced it would have to take millions of dollars...
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