Tenn. Bank Blasts Investor Suit Alleging Stock Inflation

Law360, Los Angeles (June 19, 2013, 6:12 PM EDT) -- Tennessee Commerce Bancorp Inc. urged a federal judge Tuesday to throw out a class action claiming the bank holding company led investors to buy securities at artificially inflated prices, saying the plaintiffs failed to present any facts to support allegations of securities fraud.

The plaintiffs allege that Tennessee Commerce officials deliberately filed misleading reports with the U.S. Securities and Exchange Commission to create the illusion that the company was financially sound, thereby enabling it to sell securities at artificially inflated prices. But in Tuesday's motion to...
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