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Class Action Against NY Community Bancorp Tossed

Law360 (September 20, 2006, 12:00 AM EDT) -- A federal judge has thrown out a securities class action alleging that New York Community Bancorp Inc. misled investors and ran afoul of federal securities laws by misrepresenting the company’s investment practices, its vulnerability to potential changes in interest rates and ability to sustain growth.

The plaintiffs argued that the company passed itself off as more conservative—i.e., risk-averse—than it actually was.

But while the defendants may have been guilty of general puffery, they didn’t engage in the kind of specific deception that’s actionable under federal securities...
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