Law360, New York (March 31, 2011, 8:06 PM ET) -- A federal judge in New York threw out a securities class action against E-Trade Financial Corp. on Thursday, finding that investors' claims of auction rate securities-linked fraud were too weak.
The aggrieved investors did not make an adequate case that E-Trade deliberately misrepresented the risks of investing in ARS, which had a $300 billion market that collapsed in 2008, Judge Sidney H. Stein of the U.S. District Court for the Southern District of New York said.
It is equally plausible that E-Trade was caught off guard...
E-Trade Beats Investors' Securities Fraud Claims
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