Fraud On Market Theory No Good In Ins. Case: Court

Law360, New York (April 29, 2009, 12:00 AM EDT) -- The Colorado Supreme Court has held that a fraud on the market theory — typically invoked in securities class actions — can't be applied to maintain an insurance class action under a state consumer protection law, and that a trial court didn't abuse its discretion when it decertified the class in the case.

Colorado's high court handed down its opinion on Monday, reversing an appeals court decision and ruling in favor of petitioners Farmers Insurance Exchange and subsidiary Mid-Century Insurance Co., who were sued under the...
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