Shareholder Suit Against Vanguard Tossed

Law360, New York (April 6, 2009, 12:00 AM EDT) -- A federal judge has dismissed a lawsuit alleging investment manager The Vanguard Group Inc. and its executives and affiliates illegally invested money in gambling operations that were the subject of a government crackdown in 2006.

Judge Denise Cote of the U.S. District Court for the Southern District of New York on Thursday ruled that plaintiffs in the proposed class action lacked standing to pursue federal racketeering claims. She declined to exercise supplemental jurisdiction over the state law claims and dismissed the case.

The defendants had argued...
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