NovaStar Fails In Bid To Nix ERISA Action

Law360, New York (February 13, 2009, 12:00 AM EST) -- NovaStar Financial Inc. has lost a bid to toss a putative class action brought by a former employee alleging the one-time subprime mortgage lender caused millions of dollars in losses to workers' retirement accounts and breached federal laws by investing in its own struggling shares.

In an order Wednesday, Judge Nanette Laughrey of the U.S. District Court for the Western District of Missouri denied NovaStar's motion to dismiss, ruling that the plaintiff had adequately alleged a loss conferring standing to make a case, at this stage...
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