United Rentals Survives Cerberus Merger Suit Appeal

Law360, New York (August 31, 2010, 4:19 PM EDT) -- A federal appeals court has affirmed the dismissal of a shareholder action accusing United Rentals Inc. of withholding information regarding a proposed acquisition by Cerberus Capital Management LP, ruling there was no convincing evidence of scienter at work.

The plaintiffs could not prove scienter compellingly enough to discount the assumption that none was there, given the facts of the case, a three-judge panel ruled Monday in the U.S. Court of Appeals for the Second Circuit.

The private-equity giant had offered $7 billion for United Rentals in...
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