Class Cert. Bid Fails In Centerline Derivative Suit

Law360, New York (December 3, 2008, 12:00 AM EST) -- A judge has denied class certification to shareholders of alternative asset manager Centerline Holding Co. in a shareholder derivative suit arising from a $131 million stock transaction that allegedly unfairly benefited corporate insiders.

In a decision filed Monday in the U.S. District Court for the Southern District of New York, Judge Shira A. Scheindlin said the primary plaintiff in the suit — investor John Carfagno — lacked standing needed to meet the standards for certifying a class in a derivative action under Delaware law.

“While it...
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