5th Circ. Revives Flowserve Investors' Fraud Claims

Law360, New York (June 22, 2009, 12:00 AM EDT) -- Faulting the lower court’s standard for loss causation, a federal appeals court has breathed new life into a putative class action alleging Flowserve Corp., as well as the company’s underwriters and auditors, defrauded investors with false financial reports.

On Friday, Judges Sandra Day O’Connor, on hiatus from retirement, Jacques Wiener and Carl Stewart of the U.S. Court of Appeals for the Fifth Circuit vacated the lower court’s denial of class certification and reversed the decision to dismiss the fraud allegations against Flowserve, Banc of America Securities...
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