5th Circ. Backs Dismissal Of USAA Fraud Action

Law360, New York (June 10, 2009, 12:00 AM EDT) -- A federal appeals court has agreed with a lower court that board members of an insurance reciprocal exchange do not have a fiduciary duty to their members, upholding the dismissal of a proposed class action against the board of the United Services Automobile Association.

The U.S. Court of Appeals for the Fifth Circuit on Wednesday found that James E. True could not pursue claims for breach of fiduciary duty or constructive fraud against the board because the board owes a fiduciary duty only to USAA, not...
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