2nd Circ. Nixes Star Gas Securities Fraud Action

Law360, New York (August 24, 2009, 1:50 PM EDT) -- A federal appeals court has shot down a putative class action brought by Star Gas Partners LP shareholders claiming the home heating oil retailer misled investors, upholding a lower court's ruling that the plaintiffs have failed to make a case for securities fraud.

The U.S. Court of Appeals for the Second Circuit issued a summary order Thursday dismissing the investors’ claims and rejecting their bid to modify a consolidated amended complaint.

Although Star Gas’ stock price plummeted in October 2004, the company properly notified investors that...
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