2nd Circ. Nixes Derivative Suit Over GE's Mortgage Co. Buys

Law360, New York (May 3, 2013, 5:43 PM EDT) -- The Second Circuit on Friday affirmed the dismissal of a shareholder derivative suit over General Electric Co.’s mortgage-servicing acquisitions, agreeing with a lower court that the plaintiffs had failed to adequately plead their claims.

In an unprecedential summary order, the court said the derivative complaint had failed to adequately show that GE's board had acted negligently in pursuing a series of transactions over the past 10 years that exposed it to the financial crisis of 2008.

“Here, we find no error by the district court in...
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