Appeals Court Tosses AmEx Securities Fraud Suit

Law360, New York (September 26, 2008, 12:00 AM EDT) -- A federal judge on Friday rejected for the second time a lawsuit filed by a class of shareholders against current and former American Express Co. executives over investments in junk bonds that lost the company millions.

Judge William H. Pauley III of the U.S. District Court for the Southern District of New York ruled that the plaintiffs did not prove that the American Express executives hid the falling value of the junk bonds from investors and that testimony that the plaintiffs received from confidential witnesses did...
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