2nd Circ. Clears AmEx In Suit Over Lending Standards

Law360, New York (August 30, 2011, 6:29 PM EDT) -- The Second Circuit on Tuesday affirmed the dismissal of a class action against American Express Co., ruling that a 2008 stock plunge was the result of bad business strategy, not a conspiracy to conceal problems in AmEx's consumer credit card business.

A three-judge panel affirmed U.S. District Judge William Pauley's July 19 ruling dismissing the suit, which accused CEO Kenneth Chenault and Chief Financial Officer Daniel Henry of growing AmEx's credit card business by lending to riskier clients and then lying about the relaxed standards....
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