3rd Circ. Tosses Most Of Shareholder Suit V. Avaya

Law360, New York (April 30, 2009, 12:00 AM EDT) -- A federal appeals court on Thursday largely upheld the dismissal of a shareholder lawsuit against Avaya Inc., saying that the plaintiffs had not made sufficient claims of scienter and that the majority of statements alleged to be false fell under safe harbor rules of existing securities law.

But a three-judge panel of the U.S. Court of Appeals for the Third Circuit revived one aspect of the case — claims that Avaya executives knowingly made false statements regarding the pricing of its telecommunications services in March 2005....
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