8th Circ. Gives Novastar Subprime Action The Boot

Law360, New York (September 2, 2009, 4:07 PM EDT) -- A federal appeals court has affirmed the dismissal of a securities fraud class action against Novastar Financial Inc., in what a lawyer representing the subprime lender characterized as the first time such a case tied to the mortgage meltdown was booted at the federal appellate level.

Tuesday's ruling, in the U.S. Court of Appeals for the Eighth Circuit, affirmed that the complaint did not meet that heightened pleading requirements of the 1995 Private Securities Litigation Reform Act and said that "any attempt to amend the complaint...
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