Kid Brands Escapes Securities Suit Over Duties Scandal
By Michael Lipkin
Law360, Los Angeles (November 15, 2013, 7:56 PM ET) -- A Third Circuit panel Friday rejected an investor’s attempt to revive a putative securities fraud class action accusing Kid Brands Inc. of obscuring its products’ origins to avoid duties and misleading investors about its financial health, finding that the investor did not show intent to deceive.
Plaintiff Shah Rahman had appealed to the Third Circuit after a lower court dismissed his suit because he didn't adequately plead knowledge of wrongdoing by company executives.
In his appeal, Rahman argued that he quoted “well-placed” confidential witnesses who had...