Scholastic Closes Book On Shareholder Class Action

Law360, New York (October 01, 2010, 4:50 PM ET) -- A judge has dismissed a proposed securities class action against Scholastic Corp., saying plaintiffs failed to show the children's book publisher caused a stock plunge through an allegedly fraudulent accounting scheme.

Judge George B. Daniels of the U.S. District Court for the Southern District of New York rejected allegations that Scholastic had made material misstatements or acted with intent to defraud investors, and on Thursday he dismissed the case.

“The complaint fails to allege sufficient facts to support plaintiffs' contention that the defendants' purported misconduct caused...
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