'Absurd' Shareholder Suit Over Magna Woes Gets The Ax

Law360, New York (August 26, 2013, 1:39 PM EDT) -- A putative class’ claim that auto parts supplier Magna International Inc. downplayed production problems to investors “borders on the absurd,” a New York federal judge ruled Friday.

The judge granted a motion to dismiss made by the car parts supplier, one of the largest in the world, because Magna had repeatedly warned shareholders that four of its European facilities were experiencing operational inefficiencies that would take years to resolve.

“An actionable securities fraud claim requires more than a frustrated investor,” U.S. District Judge Naomi Buchwald wrote....
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