6th Circ. Rejects Stock-Inflation Suit Against KeyCorp

Law360, Los Angeles (March 26, 2014, 7:30 PM EDT) -- The Sixth Circuit on Wednesday affirmed the dismissal of a putative class of KeyCorp 401(k) participants' claims that they paid inflated prices for company stock, saying the plaintiffs had failed to plead that KeyCorp's alleged misrepresentations caused a sharp drop in its stock value.

A three-judge appeals panel agreed with U.S. District Judge Donald C. Nugent that the plaintiffs' Employee Retirement Income Security Act suit didn't meet the loss causation requirements established in the U.S. Supreme Court's 2005 ruling in Dura Pharmaceuticals Inc. v. Broudo, which...
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