2nd Circ. Says Gas Co. Investors' Disclosure Suit Lacks Intent
Law360 (April 24, 2019, 6:04 PM EDT) -- The Second Circuit agreed Wednesday with a lower court’s finding that an investor lawsuit accusing propane supplier Ferrellgas of embellishing its financials failed to allege intent.
The proposed class of investors claimed in part that Ferrellgas Partners LP hid from them the likelihood that one of its contractors was going to default on certain payments. A three-judge panel affirmed the district court’s dismissal of the allegations, saying company executives wouldn’t necessarily have known about the default beforehand.
“We agree with the district court that plaintiffs’ complaint suffers from a fatal defect: it assumes without sufficient supporting allegations that defendants knew or should...
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