Stonepath Investors Dealt 2nd Blow As Court Tosses Suit

Law360, New York (November 2, 2005, 12:00 AM EST) -- A federal judge has dismissed a class action suit alleging securities fraud filed by shareholders of logistics company Stonepath Group, making it the second suit against the company dismissed in the past two months.

The suit, filed after eight separate shareholder suits consolidated, alleged that executives of Stonepath “had understated its accrued purchased transportation liability and related costs of purchased transportation.”

When the company announced it would have to restate its finances from prior periods, share prices dropped 46% in a single day.

The dismissal is...
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