5th Circ. Affirms Dismissal Of Securities Beef V. TXU

Law360, New York (April 9, 2009, 12:00 AM EDT) -- A federal appeals court has affirmed the dismissal of a purported class action brought by investment groups accusing energy company TXU Corp. and its former chief operating officer of misrepresenting details of a securities buyback program to tempt investors to sell back securities at a reduced price prior to the announcement of a dividend increase.

The U.S. Court of Appeals for the Fifth Circuit on Wednesday affirmed a lower court's April 2008 dismissal for failure to state a claim.

"This is a well-deserved victory for the...
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