Fraud Info Delay Can't Cause Stock Loss, 7th Circ. Says

Law360, New York (March 29, 2012, 6:03 PM EDT) -- A company's delay in disclosing fraud cannot be said to have caused the losses of shareholders who held on to stock that declined in value when the fraud was eventually revealed, the Seventh Circuit ruled Thursday in a published opinion.

The appeals court affirmed an Illinois federal judge’s dismissal of Robert M. Anderson’s suit claiming he lost millions in 2002 when Aon Corp.’s stock dropped amid revelations the insurance broker had overstated its income over several years. Anderson claimed that had he known about Aon’s true financial...
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